Income tax on mineral rights income for foreigners

[Bjorn_Erling_Sandnes]

I have some questions regarding tax for non-U.S. residents on mineral rights income. We are four persons residing in Norway, Europe, sharing the income from oil and gas production near our inherited property in Divide County, North Dakota.

Twice a year I get a wire transfer from Hunt Oil. On the last transfer last December, I was informed that the (gross) revenue was approx. $1,356, tax $97, and other deductions $407. “Other deductions” is explained in the statement as “federal backup withholding.” What actually is that?

Tax and “other deductions” are more than 37% of the gross revenue. That is a pretty high tax on a pretty low income, also to Scandinavian standards.

As a foreigner, I don’t have a U.S. social security or tax I.D. number. Does anyone know if I can get some of this very high tax refunded? If so, how shall I proceed?

[Lars_Ljungmann_Spatzek]

Do you have an ITIN number? As a foreigner you cannot use IRS to claim a “tax refund.” If you have an ITIN, your W-7 formula under: Reason you’re submitting Form W-7 you must use a, f and write the Tax Treaty between US and Norway, Treaty number and where in the treaty mineral owners don’t need to pay federal tax. We are only paying local tax in Williams County, North Dakota.