1099 FAQs

When will I receive my 1099?

1099s will be mailed to your address of record by January 31st of every year.

I received very few royalty payments. Will I receive a 1099?

The minimum amounts for which 1099s are issued are:

  1. ​Box 1 (Rents) – $600
  2. Box 2 (Royalties) – $10
  3. Box 7 (Non-Employee Compensation/Gross Working Interest) – $600

It is the end of February and I did not receive my 1099. How do I get a new one?

Call our owner relations line at 832-242-9575 or email us at ownerrelations@sabineoil.com. In addition to your owner number, you will be asked to verify your address and Social Security number. You can then have the form faxed, emailed or re-mailed.

My address has changed, and I did not receive my 1099. How do I get a new one?

All requests for a change of address must be submitted in writing. To request a change of address:

  1. Send a written request to 1415 Louisiana, Suite 1600, Houston TX 77002
  2. Fax a written request to 832-242-9729
  3. Send an email with written PDF request to ownerrelations@sabineoil.com
  4. Visit www.sabineoil.com and click the Owner Relations tab Once a change of address has been received, a 1099 can be requested at 832-242-9575 or email ownerrelations@sabineoil.com.

What are the numbers on my 1099?

The numbers are as follows:

  1. Box 1: Rents: Monies paid for Lease Bonus and Right of Way
  2. Box 2: Royalties: Gross payments made on production or minimum royalties
  3. Box 3: Other: Damages and water usage
  4. Box 4: Federal Income Tax Withheld (No Tax ID or Social Security Number on file)
  5. Box 7: You will see either:
  • GWI: Gross Working Interest: Your owner type shares in the operating revenues and costs associated with the well. This is most commonly seen along with monies in Box 2.
  • NEC: Non-Employee Compensation: Payments made to contractors

The amount in Box 2 does not equal what I deposited. Why?

Sabine is required to report Gross Royalty Amounts to the IRS. Your periodic disbursements are net of production- related deductions and State Severance Taxes. Refer to the summary at the bottom of your 1099, the “Net=$”, or Net figure should equal your deposits.

The Net does not equal my deposits. How do I get the detail?

Contact our Owner Relations line at 832-242-9575 or send a request via email at ownerrelations@sabineoil.com and we will provide you with detail. Your year-to-date totals can be found on your December check stub.

I received my December royalty check in January. Why is it on my 1099?

The IRS uses a “Constructive Receipt” doctrine. Because the payments are issued in December, the figures are appropriately included on the 1099.

I had several old royalty checks dated prior to the 1099 reissued. I’ve already reported the amounts in the year the original payment was issued. How do I ensure the amount is not being double-reported?

We have made every attempt to exclude these amounts from your current year 1099. In the event that you think we have made an error, please contact the Owner Relations line at 832-242-9575 or send a request via email at ownerrelations@sabineoil.com and we will research the matter and correct if necessary.

I want to lower my tax bill. Can you withhold Federal Taxes from my checks?

Sabine does not withhold Federal Taxes unless required by statute.

What are the Other Deductions and where do I put them on my tax form?

Other Deductions include your share of expenses incurred to make the products salable and to transport to market as well as your share of the State Severance Taxes assessed on production. Sabine is not able to provide any tax advice and encourages all owners to seek proper tax assistance in preparing their tax returns.