Amended Division Order

I just recieved a Amended Division Order, it states if I do not sign 30% in taxes will be held out does this mean that the money I have accrewed will now be considered income ? P.s. I have not signed a lease or agreed to go non-consent.

Donna, those little angels [ oil company ] are trying to bully you. It would be abusive for them to hold out the maximum in taxes because you did not return a division order, which by law you don't have to do.

I believe they are trying to combine the division order with gathering your taxpayer information. If you send them your taxpayer information, they should not withhold the maximum. If you send them the taxpayer information and they do withhold the maximum, something like 28.5% federal and 4% ND state taxes, I would see if I could not get them in trouble.

If they said that they would withhold the maximum for not returning the division order, it sounds like extortion to me, since by law you do not have to return the division order.

If they said they were withholding the maximum [ it's called "backup withholding" and they are instructed by the IRS to do it for people whom they don't have taxpayer information on ] because they don't have your taxpayer information, that would be a different story. I hope this clarifies things for you.