A severance tax review is an analysis of an oil and gas operator’s wells that are in a state that requires a ‘severance tax’ on minerals taken from the ground. There are exemptions unique to each state that allow that tax burden to be reduced. Operators are required to report to the state the actual volume of minerals being removed, which is then taxed at various rates. For this specific tax, there are deductions and exemptions that apply, as well as tax rate applications that are often overlooked or missed by the producer.  In many cases, mineral operators pay severance taxes far in excess of what is actually required by the state. Our team is second to none in identifying missed opportunities, and recovering lost tax dollars sending them back to where they belong, your bottom line.

We have an extremely sharp department when it comes time to identify your severance tax filings and any potential for overpayment. We will not come in and just pick the easy to identify low-hanging fruit. We will identify both your liabilities and refund opportunities to give you the full compliance picture.

Unlike other firms, we put you in the driver’s seat when it comes time to file your refund. Sometimes through our thorough work, we do find instances where there is exposure or underpayment of severance tax. In that situation, we bring our findings to you and let you decide what to pursue. We understand the dynamic of letting our clients decide what is best for their business.

After our work is complete, we train every single one of our clients on our findings so they can begin to identify these types of situations. We believe in adding value to our clients through a relationship and want to make sure they avoid overpaying severance tax going forward.