Frequently asked questions

Tax Information

The IRS and Federal law requires individuals and partnerships to provide a valid Taxpayer Identification Number (TIN). A Social Security Number (SSN) is required by an individal owner and a Federal Employer Identificaion Number (FEIN) is required for companies, trusts, and a limited liability conpany (LLC). For a copy of a W-9 please visit the IRS W-9 site by clicking here.

Royalty interest owners who received $10 annually and working interest owners who received a minimum of $600 annually will receive a Form 1099-MISC. For more information on the 1099-MISC please visit the IRS 1099 site by clicking here.

The 1099 is mailed out on or before January 31st.
Please allow two weeks for delivery of your 1099 after January 31st. If you do not receive your 1099 by mid-February, please contact ­­­­­­ 303-463-8799 and ask for the tax department.

The Colorado DR21-W is provided to interest owners who own an interest on a well where severance taxes were withheld and remitted to the state. The owner will receive a DR21-W on a lease by lease basis. Download the proper form by clicking here.

The form must be mailed by March 1st. Please allow two weeks for delivery of form. If you do not receive your DR21-W by mid-March, please contact 303-463-8799 and ask for the tax department.
The majority of states levy severance tax when oil and gas is produced. The tax is computed on value or volume of oil or gas sold at the well head.
Conservation tax provides funds for each states energy conservation and research programs. The tax is levied by each state.
ExTex requires a valid Social Security Number or TIN (provided on the W-9). In the event an owner chooses to not provide a valid SSN or TIN, the IRS requires withholding of 28% of all US citizens.

This form is to be filled out by any foreign individual receiving US income. It must contain a foreign tax ID or US tax ID. If there is not a tax ID a date of birth is required. A mandatory 30% Federal withholding will be taken out of all income and reported to the IRS. At the end of the year foreign individuals will receive a 1042 Form versus the 1099 Form. For more information on the W8-BEN please visit the IRS W8-BEN site by clicking here.

Ad Valorem tax or property tax is based on the appraised value of the oil and gas within the well and the equipment related to the well. The tax is assessed by the county and is generally calculated by using the production information from the previous calendar year along with a fair market value of the well equipment.