2/11/2023 0 Comments Severance Tax ServicesSeverance tax services are a special type of tax compliance and advisory service designed to reduce your overall tax burden, especially in states that impose severance taxes on minerals extracted from natural resource wells. This type of review is unique in that it identifies state-specific exemptions and reductions that can significantly lower your severance tax bill. Identify tax savings opportunities through lease operating expense, capital spend, and production data analysis. Provide position-substantiating documentation for client management and legal counsel as they navigate the severance tax process. Get more info on severance services by clicking this link. Create a comprehensive severance tax profile for Client’s operations and ensure proper filings. Analyze the impact of state and federal severance tax legislation to develop strategic positions for optimal client outcomes. Prepare and file severance tax returns, including the Oil and Gas Production Tax (OGPT), in all states that levy them. For oil producing states, these taxes are based on the value of the oil produced or the volume of production. Maximize severance tax revenue through a strategic approach Severance and production taxes are an important source of tax revenue for oil and gas states. However, these taxes are volatile in nature because they depend on the price and production of a state’s resources. Many states are experiencing an economic downturn, which can cause severance and production tax collections to drop. In 2017, severance and production tax revenues totaled $9 billion in the United States. These revenues are distributed to a variety of local governments, including school districts and police departments, as well as state agencies. Depending on the state, these revenues are used to fund programs and initiatives that protect the environment, conserve natural resources, promote energy efficiency, or reduce the burden of home energy costs. In some cases, these funds are used to pay for the cost of building public infrastructure. The severance and production tax system has changed dramatically over the past few years, as states have developed new strategies for generating revenue from oil and gas production. While these new approaches vary by state, they generally consist of various rate schemes and methodologies that are based on the value or volume of oil and gas produced. The commercial real estate property tax company offers severance tax services. Apply incentives to encourage new drilling and production Incentives are often used to reduce severance and production taxes, which can be a powerful tool for attracting new investment and promoting growth in the energy industry. In addition, some states offer credits to offset the local taxes that are imposed on oil and gas production, which can help to keep severance and production taxes competitive with other tax sources. A severance and production tax review is a complex process that requires detailed knowledge of natural resource field operations as well as state-specific tax codes. It involves a multifaceted approach that includes meetings with your personnel, extracting relevant data from your internal systems, and obtaining access to the appropriate state reporting software. Zoom out: Understand the Client’s severance and production tax posture, strengths, and blind spots to uncover opportunities for increased profitability. Check out this post for more details related to this article: https://en.wikipedia.org/wiki/Property_tax.
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2/11/2023 0 Comments Severance Tax ServicesSeverance tax services help companies navigate the complexities of state and federal taxes that are imposed on oil, gas, minerals, and other non-renewable resources. Understanding the compliance nuances of these tax obligations is essential to effectively maximizing incentives and deductions that can significantly reduce a company’s overall operating costs. Invoke helps clients assess and maximize their severance tax liabilities through a variety of state-specific audit reductions, refund claims, and other tax recovery strategies to capture potential savings that can be applied to operational expenses. We are well versed in the unique tax laws of each state jurisdiction and can help your organization ensure that you are utilizing all available tax relief opportunities to minimize severance tax liability, while maintaining a positive bottom line. This resource outline the benefits of severance tax services. The severance tax process is complex and often requires substantial time and resources to fully understand and effectively manage. Our experts are familiar with the severance tax requirements of each state and can provide insight and guidance to reduce administrative burdens, identify process improvements, and achieve cost savings by avoiding errors and overpayments. Generally, severance pay is subject to the same federal and state withholdings that apply to normal wages. However, severance pay may be exempt from certain types of withholdings, such as FUTA, Social Security, and Medicare. This will depend on the type of severance pay received and will be outlined in your severance payment agreement or plan. When a lump sum amount of severance pay is paid to an employee, the lump-sum benefit is subject to FICA taxes. This means that it is taxable as wages in the year of payment, but may be tax-exempt for the employee depending on certain rules and exemptions. It is also possible that a severance payment could be treated as a fringe benefit, which will avoid taxation in the same way as other employer-provided benefits like vacation and sick pay. Fringe benefits include items such as tuition reimbursement, health care coverage, and even car lease payments. If your employer pays a severance lump-sum to you, they must submit a tax directive application to SARS before you receive the severance benefit. Upon receipt of this application, SARS will work out the correct amount of employees' tax that your employer must withhold on the lump-sum payment and you will receive it net of taxes. Linked here is all the information you need to know before contacting a severance tax company. Many companies offer severance benefits to employees that are terminated for various reasons. The most common reason is downsizing or redundancy, but a variety of other reasons can also qualify. The IRS offers a list of qualifying reasons for severance pay and will determine whether the severance is tax-exempt under the right circumstances. The severance tax review and severance tax audit reduction processes at Invoke focus on identifying tax loss opportunities, evaluating purchase data, well records, and compliance records that may result in significant severance tax audit reduction savings for your company. This can involve assessing and presenting your transactions, well information, and other state tax reporting data in the form of work papers and refund claims for each state’s taxing authority during any stage of an engagement. Check out this related post to get more enlightened on the topic: https://en.wikipedia.org/wiki/Land_value_tax. Property taxes are a significant source of funding for local governments, which use them to finance a wide range of services including school and road funding, police and fire protection, parks, libraries and water and sewer upgrades. While homeowners may look at property tax as a burden, it’s important to understand that it is a necessary part of living in any community. Homeowners are not the only ones who pay property taxes; businesses also make a huge contribution to their local community’s tax base. If you own a business or are considering buying a commercial property, it’s best to rely on a professional property tax advocate to help you reduce your tax bill. Continue reading here to find out why you should use property tax services. A property tax is a tax levied on real estate and tangible personal property like vehicles, equipment and furniture. It is typically calculated by a local government and is the single largest source of local tax revenue in the U.S. How property taxes are determined varies from jurisdiction to jurisdiction, but they generally involve two main factors: the property’s value and the tax rate. The value of the property is established by an assessor who works with the local taxing authority and is based on sales of comparable properties in the area. The property tax rate is determined by the municipality and can vary based on the size of the home and its location. New York State is a state with many different types of property tax rates, which can vary depending on the county and city you live in. Some of the different types of taxes include ad valorem (additional to the property’s value), statutory, severance and school district taxes. The amount of property tax paid is usually a percentage of the property’s value, varying from region to region. The property’s taxable assessed value is determined by a tax assessor, who then subtracts any exemptions or adjustments from that value. Most jurisdictions allow homeowners to dispute their tax rate or request a review of their property’s taxable value by filing a protest. However, a protest can be time-consuming and expensive to pursue. You can save yourself time, hassle and money by letting the experts at Texas ProTax handle your property tax questions for you. Instead of spending months trying to fill out forms or digging through piles of appraisal records, a Texas ProTax property tax consultant can help you get answers in a matter of minutes! Why you should hire a property tax advocate It’s no secret that paying your property taxes is an essential aspect of owning or managing a property. In fact, if you don’t pay your property taxes, your local government can seize your property and assign a lien against it. This includes ensuring that all property in the county is properly appraised, and that the property tax lists are accurate and up to date. Counties are required by law to maintain a real property tax services agency to oversee the property tax administration within their county. This agency is headed by a director who is appointed for a six-year term by the local government. The role of the director is to ensure that the property tax system is fair and equitable. For more understanding of this article, visit this link: https://www.britannica.com/topic/property-tax. |
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