How much taxes do we have to pay on our royalty payments? The person who does our income tax said it would be one third.
Oil and gas royalties are taxed like ordinary income, so it depends on your overall tax/income situation.
You are taxed at your regular rate under the federal tax code. I would consider finding someone else to do your taxes.
If you volunteer to pay the voluntary income tax, then you are required to follow the guidelines. The income tax laws (statutes) are specifically written to imply your implied consent. By filing an income tax form on your income, you have implicitly given your (voluntary) consent to pay your (fair) share. There is no law or statute that requires you to file any form informing the Federal Government of your income if you are an American living in the U.S. The only people who are explicitly required to pay a tax on their income are Americans working outside of the U.S. and foreigners working inside the U.S. Also, the state income tax codes or laws say, if you are required to file a Federal income tax form, then you are required to file a state income tax form. Wake up, my fellow Americans, and stop volunteering! The Feds want you to think you are required to pay income tax. It is explicitly voluntary! It is not authorized by our Constitution to give the Federal Government the power to tax our income! Keep your money for yourselves and your family. They are the ones who need it.
And what do you suggest one does, Mr. Goodall, when they levy the income from your leases from the source?
I guess we do what we have been taught to do by our parents and grandparents and pull our pants down and bend over. At least our generation has learned to bring a tube of KY jelly to ease the pain.