Revenue exports aren’t always filing-ready
Royalty payment information, such as owner’s name, TIN, address, etc., has to be validated and potential errors identified before it can be used for filing.
Oil, Gas, and Energy Royalties
Royalty payment reporting starts with reliable data
Zenwork helps oil and gas companies turn royalty payment data into compliant tax reporting. From automated data checks to federal and applicable state filings, we help teams prepare returns.
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16Filing seasons
50States supported
99.99%Platform uptime
SOC 2Type II assurance
Revenue data alone doesn’t create a 1099.
State reporting requirements add an extra layer
Nonresident ownership adds an extra layer of state reporting responsibilities. Some states have specific reporting and withholding requirements beyond federal filing.
Distribution disputes and corrections require follow-through
Royalty reporting doesn’t always end after submission. Using incorrect royalty payment data can lead to more work after submission if the return was rejected.
The royalty reporting threshold stays. The IRS filing route changes.
2026 payments
2026 payments: Royalties retain the $10 threshold
The federal reporting threshold for royalty payments has not been changed. It remains at $10 and is reported in Form 1099-MISC Box 2.
2027 filing season
IRIS replaces FIRE for 2027 filing season
The IRS will stop accepting FIRE submissions on November 19, 2026. Zenwork transmits under its own TCC and has been accepting filings through IRIS since tax year 2024.
Reduce the manual work involved in royalty 1099 reporting.
Find mistakes in royalty-owner records early
Instead of manually reviewing thousands of records, use IRS name/TIN matching, USPS address checks, and field validation to identify and fix the records that could delay filing.
Owner records
Dana WhitfieldTIN ***-**-4417Ready
Ridgeline Minerals LLCTIN ***-**-0352TIN mismatch
Marcus ElleryTIN ***-**-8861Ready
State filings and owner statements are managed together
Prepare federal and supported state filings as well as deliver royalty-owner statements to the validated USPS address through a single workflow.
Dana WhitfieldNonresident owner
Federal 1099-MISCAccepted
State statementFurnished
Keep reporting accountable across payer EINs
Get a consolidated view across multiple EINs. Give finance leaders insights into the pending and completed filing status without chasing updates from each entity.
Payer entities
Ridgeline OperatingEIN **-***4410Accepted
Ridgeline MineralsEIN **-***7762Pending
Ridgeline EnergyEIN **-***2195Review
Avoid the complexity of a separate IRIS transmission
Zenwork transmits information returns under its own TCC, tracks IRS responses by form, and manages supported form corrections and voids.
IRS transmission
1099 Data Import
Zenwork TCC
IRIS
Enterprise reporting built around existing revenue systems
Control who can access filings
Assign role-based permissions for preparers, reviewers, and approvers. Protect sensitive information using SSO, two-factor authentication, and log filing activities.
Use your existing revenue systems
Bring royalty payment records into Zenwork through Excel/CSV imports, secure file transfer, or REST APIs without replacing revenue accounting systems.
Frequently asked questions
Which 1099 forms apply to oil and gas royalties, rents, and working-interest payments?
The correct 1099 form for oil and gas royalties, rents, and working interest payments depends on the payment classification. Oil, gas, and mineral royalties are generally reported in Form 1099-MISC Box 2. Reportable rents, including surface royalties, belong in Box 1 of Form 1099-MISC. Oil and gas working-interest payments are generally reported on Form 1099-NEC. Zenwork supports preparing and filing these returns.
Does the new $2,000 reporting threshold apply to oil and gas royalties in 2026?
No. The federal reporting threshold for royalties remains at $10 for tax year 2026. The new $2,000 threshold generally applies to qualifying rent payments and working-interest payments.
Why can a royalty owner’s 1099-MISC show more than their actual payment?
Form 1099-MISC Box 2 reports the gross oil, gas, and mineral royalties before deducting any severance and other withheld taxes. An owner’s net distribution may therefore be lower than what was reported on a 1099-MISC. Operators can use their revenue accounting records to explain the difference.
Do nonresident royalty owners require separate state tax statements?
Federal submission doesn’t always satisfy state filing obligations. The requirements vary by state, withholding, and other payment circumstances. So, depending on the state and withholding rules, oil and gas operators may need to submit additional returns or statements.
Zenwork offers support for Combined Federal/State Filing, direct-state and state-only filing, including applicable reconciliation and corrections.
How does FIRE retirement affect oil and gas 1099 filing in 2027?
Since FIRE will stop accepting information returns on November 19, 2026, returns previously transmitted through FIRE must be filed through the IRS Information Returns Intake System (IRIS). Operators that are using a FIRE-based transmission process need to apply for an IRIS TCC to continue filing directly, or use a third-party provider that transmits through IRIS under its own TCC. Zenwork already files 1099s through IRIS, allowing operators to file 1099s without developing their own direct IRS connection.
Turn the next filing season into a more manageable one.
See how Zenwork reduces preparation across owner records and supports state reporting and IRIS submissions using your existing revenue exports.
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