Severance Tax Reporting

Oil and gas producers have to make a difficult decision when it comes to reporting and paying their severance taxes. They must decide if it is beneficial to hire accounting personnel who will file the severance tax returns or have the purchaser report and withhold from revenue the severance tax payment and submit it to the state taxing authority. In an effort to reduce general and administrative expenses most oil and gas producing companies take the position that reporting your own taxes does not warrant the added expense of hiring the personnel to complete the returns. The down side to this approach is when the purchaser withholds the taxes and pays them they are under no obligation to seek out and take advantage of severance tax incentives that would save the oil and gas producer money. An cost effective alternative to hiring your own accounting staff to complete your severance tax reporting requirements is to hire Petroleum Accounting Consultants, PLLC. Our consultants can complete your severance tax returns and save you money on salary expense and payroll tax expense. More importantly our consultants are familiar with the various severance tax incentives offered by oil and gas producing states and can take advantage of them, which will save you money on your severance taxes. Petroleum Accounting Consultants, PLLC has a vast amount of experience and knowledge regarding the different states severance tax laws and severance tax incentives. Our severance tax reviews include: 

  • Reviewing previously filed returns for errors 
  • Calculation of gas marketing deductions 
  • Review of tax incentives that your company was eligible for but did not claim
  • Filing of all amended returns and claims for refunds. Each oil and gas producing state has statute of limitations regarding the amount of time that can elapse before a refund claim is submitted. For example, the state of Texas has a four year statute of limitations while Oklahoma limits refund claims to three years.

Don’t let the statute of limitations run out on your refund contact our office today. We will submit the claims for refunds to the appropriate regulatory agencies for their review and approval. Once the regulatory agency approves the claim for refund they will issue a refund check.

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"Petroleum Accounting Consultants, PLLC's diligence and understanding of tax law have resulted in a substantial amount of returned tax dollars to our company. Their work ethic and ability to achieve results have been impressive. Arrow Oil & Gas, Inc. appreciates Petroleum Accounting Consultants, PLLC efforts and we look forward to a long lasting relationship."

- Courtney Brackin - Arrow Oil & Gas, Inc.

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Gross Production Tax Refunds

Over the years we have worked with over 70 companies and recovered over $30 million in refunds for those companies. We have obtained refunds for large publicly traded companies and small privately held companies. We have been able to get a a refund of gross production taxes for every client that has retained our services.

Because of our years of experience we are able to obtain these refunds with very little of our clients' time. Based on our experience we are able to identify opportunities that in-house accountants would miss. Outsourcing your gross production tax refunds will result in a larger refund because of our years of experience. Our fees are based on a contingency fee structure so there is no fee is we are not able to recover a refund for your company. Give our office a call today to schedule your free assessment of the refunds that may be available to your company.

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