Severance tax and 1099s
Severance tax and 1099s, handled.
Severance tax: the state tax on oil and gas produced and sold. We handle it in multiple states. 1099s: the year-end tax forms for the owners and vendors you paid. We provide them to you, from your books.
20 clients and hundreds of wells operated
What you get
What lands on your desk.
- Severance tax reports prepared Severance tax worked out from your sales for each state you owe, with each source line shown.
- Filed and paid We file each report and set up the payment, like through TexNet in Texas. You approve every payment before it goes out, unless your agreement says otherwise.
- Your 1099s We provide your 1099s for every owner and vendor you paid, prepared from your books.
- Missing tax IDs flagged Owners or vendors with no tax ID on file flagged early, so you can ask for a W-9.
- State royalty reports For wells on state-owned land, as needed.
- A package for your CPA The year-end numbers your CPA asks for, from the books.
Missing tax IDs, before 1099 season
2 owners have no tax ID on file.
Ask them for a W-9 now, so your 1099s are ready on time.
How it works
Three steps.
Give us access to your books.
We process your books in WolfePak. On QuickBooks or another system? We convert your books to WolfePak first.
Send bills and statements as they come.
Forward vendor bills and buyer check stubs to your RedBird address. Or reply to our text with a photo or a file.
You approve. We close the month.
You approve every payment before it goes out, unless your agreement says otherwise. We close the books, and you get the Monthly Compliance and Close Report.
Compare
The old way vs RedBird.
The old way: Each state's report tracked by hand.
With RedBird: Severance tax worked out from your sales for each state you owe.
The old way: Missing tax IDs found in January.
With RedBird: Owners or vendors with no tax ID flagged early, so you can ask for a W-9.
The old way: Your CPA asks for the same numbers every year.
With RedBird: A year end package for your CPA, from the books.
The terms, in plain English.
- Severance tax
- A state tax on oil and gas produced and sold. Each state has its own reports and due dates. We handle it in multiple states.
- TexNet
- The Texas Comptroller's online system for tax payments. Other states have their own systems.
- 1099
- Year-end tax forms that report what you paid to owners, like royalties, and to vendors, like services.
- State royalty report
- A royalty report owed on wells on state-owned land, when your lease calls for one.
- CPA support
- The numbers from your books that your outside CPA needs to do your returns.
Questions.
What is severance tax?
A state tax on oil and gas produced and sold. Each state has its own reports and due dates. In Texas, it is reported and paid to the Texas Comptroller.
Which states do you handle?
Multiple states. Our accounting covers Texas, New Mexico, Oklahoma, Montana, and North Dakota. Tell us where your wells are on the call.
Do you pick my tax rate?
No. Rates and exemptions are set by the state. We use the ones that apply to you, and we flag anything unclear for your CPA.
Do you provide 1099s?
Yes. We provide your 1099s, prepared from your books. Owners or vendors with no tax ID on file are flagged early, so you can ask for a W-9.
Do you prepare my tax return?
No. We give your CPA what they need from the books.
Is severance tax tied to my production report?
They come from the same wells and the same sales. When we do your books and your state filings, we check the volumes against each other.
Get started
Get your back office off your desk.
Tell us what you need. We look up the public record the state keeps on your operator number. Then we reply to set up a call.
20 clients and hundreds of wells operated