Tax and Levy

When are 1099 Misc. Tax Forms mailed out?

Your 1099 Miscellaneous Tax forms will be mailed no later than Jan. 31. If the 31stfalls on Saturday or Sunday, the IRS allows for mailing the following Monday.

Why am I being charged expenses/deductions even though I am not a working interest (WI) owner?

Some costs associated with selling a product are shared by all owners including royalty owners. WI owners share in those same costs plus the cost of exploration, drilling, completing, equipping and operating a well.

If you still believe that your lease indicates you should not have deductions, please contact Land Administration Dept. at owner relations or 281-356-7767.

Why is my 1099 more than what I received?

The 1099 shows the gross amount before taxes and other deductions as required by the IRS. In order to help you reconcile this gross amount to the total of your actual payments received, we include a reconciliation on the back of your 1099 showing the gross amount, taxes and deducts and the net amount. The net amount should tie to your total payments received for the year. If you have questions as to how this information should be presented on your tax return, please contact a tax professional.

Why is my NET more than my GROSS amount?

Net can sometimes be more than the gross due to reimbursement of Severance Tax or other adjustments. In this case, you will notice a negative tax amount on the reconciliation on the back of your 1099.

What is an IRS levy/garnishment?

A levy is a notice issued by a taxing authority (usually the Internal Revenue Service (IRS), California Franchise Board, Child Support agency, Veterans Land Board, etc.) which states that a taxpayer owes overdue taxes or payments and that proceeds or wages Team Operating, LLC normally pays to the taxpayer should be directed to the taxing authority or agency until the levy is released by the agency.

What can I do to get my levy/garnishment released?

Team Operating, LLC cannot release the levy/garnishment against your account without written notification from the agency garnishing your account.
You will need to contact the agency directly. Once you obtain a Release of Levy from the taxing authority you may e-mail it directly to owner relations or mail it to:

Team Operating, LLC
Attn: Revenue Owner Relations –Levy & Garnishments
PO Box 1063
Tomball, TX 77377-1063