# Tax Questions
**URL:** https://www.mineralrightsforum.com/t/tax-questions/69631
**Category:** Law & Legal
**Created:** [February 4, 2023, 10:14am UTC](https://www.mineralrightsforum.com/t/tax-questions/69631 "2023-02-04T10:14:29Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@Sabrina\_Pray](https://www.mineralrightsforum.com/u/Sabrina_Pray)
#### Post date: [February 4, 2023, 10:14am UTC](https://www.mineralrightsforum.com/t/tax-questions/69631/1 "2023-02-04T10:14:29Z")
Okay hypothetically let’s say there are multiple people receiving royalties on a single API. Everyone that receives royalties should pay taxes on the API, right? I mean, why would someone pay taxes on an API if they’re not getting any of the royalties? Are there any laws in regards to that?
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [February 4, 2023, 4:36pm UTC](https://www.mineralrightsforum.com/t/tax-questions/69631/2 "2023-02-04T16:36:37Z")
Your question is not clear. An API number is unique to each well. The first 2 digits are state (Texas is 42); the second 3 digits are the county; and the last 5 digits are the well. The revenues are divided among the operator, other working interests, mineral/royalty owners, and overriding royalty owners. Each owner is taxed accordingly. If you were paid by the operator or oil and gas purchaser, you should receive a 1099 with a summary of your income from the payor.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [May 5, 2023, 10:14am UTC](https://www.mineralrightsforum.com/t/tax-questions/69631/3 "2023-05-05T10:14:46Z")
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