You would not report the funds on Form 1099-R unless you received a Form 1099-R. How and whether to report the funds you received depends on what the amount represents.
The inheritance of the rights themselves is not subject to Federal income tax. If you sold the inherited mineral rights, you would report the sale and could have a taxable capital gain. If the amount represents income, typically royalties, you would report the royalty income on Schedule E of your tax return. You could incur expenses for property taxes.
Contact the payer if you are unsure what the funds you received represented.
Click here for more information on how to treat an inheritance.
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