Does Your ERP 1099

The IRS made a heap of changes last year for E&P operators when they reinstated the 1099 form. While this year's changes were not as dramatic, there's still a need to ensure your organization has the support, resources, and tools needed to prepare for filing. No worries, Enertia Software has your back!  

How We're Helping Our Industry:

Enertia Software has been proactively changing 1099 regulatory components to comply with the IRS changes to ensure our customers are as prepared as possible. Keeping up with regulatory changes is a significant part of Enertia Software's annual enhancement schedule to ensure we are covering regulations at all levels to include federal, state, and public lands.

If your ERP has left you to deal with the changes on your own, we're here to help! Here are some free resources and insights to help assist you and your team through the changes: 

• 1099 Error and Warnings

   Operators will want to review the extracted data to make sure it is accurate. Enertia provides 1099 Error and Warnings as well as 1099 resource listings to help simplify this process.

• Extract Tax Info

  - Operators can extract all tax data at once or can choose to only extract the data needed for the 1099NEC and extract the royalty data for the 1099 Misc at a later date. Since the 1099 NEC is due to the IRS at the end of January, some companies want to focus on only the data needed for those reports and deal with the royalty data after they have netted their 1099 NEC deadlines. Enertia allows you to extract all of the data at the same time if you prefer to do so.

• Manual Additions 

   Are you able to manually add additional amounts that might need to be reported within the tax information attribute?  Enertia allows users to quickly drill into the 1099 data to see payments made during the year along with payment details and gives the user the ability to manually update or add to the extraction data if needed. 

• 1099 Reports and Send 

  Does your ERP offer multiple formats of 1099 Substitute reports to include:

  - Simplified 1099 box info 
  - Mask all Tax ID numbers
  - Break down of 1099 by state
  - Break down by state and list the payments the recipient was sent during the year 😮
  - Breakdown by state and list the payments the recipient was sent during the year and mask Tax ID numbers

• 1099NEC 

  Thank goodness the IRS finally included the 1099NEC in the combined filing program starting with tax year 2021. In Enertia, you can choose which 1099 format you are reporting. If the file is being sent to a state, the process can be filtered by the state.

• Sending Corrected Data 

  Luckily, the Income Tax Information Electronic Reporting processes in Enertia takes care of either replacing or clearing the prior reported values and exactly what was previously reported.
  
  

• 1099 Checklist

  Interested in an Industry friendly 1099 Checklist in a PDF format? 
  

  

• IRS 1099-MISC and 1099-NEC Quick Link

  IRS Quick link: Instructions for Forms 1099-MISC and 1099-NEC

Regardless of your choice in upstream oil and gas accounting software, ensuring compliance with the 1099 changes required some changes to business processes, software updates, and/or both. If your ERP isn't making 1099 reporting easier for you, we can help! With over 30 years of industry expertise and experience, we've seen quite a few IRS changes and have helped oil and gas operators navigate through them all. Contact me directly with any questions you may have or, feel free to let me know how much you liked that clever little meme above. 

We hope this info was helpful and until next time, we hope you will continue to Be Well.