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Severance Tax


Severance tax issues deserve special attention as the Texas statute of limitations is as short as two years for severance taxes paid on wells that may qualify for severance tax reductions.

Our review of your State of Texas severance tax reporting would focus on locating and applying for refunds of overpaid natural gas and crude oil severance taxes under the high-cost gas, two-year inactive, and low-producing well credit rate reductions in the Texas Tax Code.  We perform all aspects of the refund process including designation of qualifying areas as high-cost gas formations, administrative well filings, report filings, audit administration, and Comptroller correspondence.  One of our top priorities is to keep the time requirement from any of your personnel on our project to an absolute minimum.  We anticipate that our only requirements from your personnel would be to provide access to well files and drilling and completion costs for any qualifying wells.  We do the rest.

We have a very good relationship with the Railroad Commission and Comptroller’s office due to the fact that our claims are fair and do not attempt to take frivolous positions while still attempting to collect the most tax refund available for our clients.  Our firm’s review would be performed by Craig Clayton (a CPA).  We feel confident that our review would be efficient and economically beneficial to your company.