An operational analysis of the windfall profit tax net income limitation final regulations

Journal Article · Wed Sep 01 04:00:00 EDT 1982 · Oil Gas Tax Q.; (United States)

OSTI ID:6279574

West, W L

On October 26, 1981, the Internal Revenue Service issued final regulations pertaining to the computation of the net income limitation on windfall profit. Several important changes were made to the proposed regulations, including the elimination of the two-month rule, changes in certain cost allocations, record requirements, partnership computational rules, and others. A substantial tax savings to the producer is possible with any one or a combination of high production, leasehold, or drilling costs. Even in those cases where certain historical information is impossible or uneconomical to obtain, other high costs could make the net income limitation applicable. In that connection, producers and/or their tax advisers should annually perform at least a cursory review of depletion schedules and other relevant information to determine if the windfall profit tax has, in fact, been overpaid. (JMT)

• Research Organization: Arthur Young and Co., Dallas, TX
• OSTI ID: 6279574
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 31:1; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
COST
DRILLING
ENERGY SOURCES
FOSSIL FUELS
FUELS
IMPLEMENTATION
INDUSTRY
LEASING
NATIONAL ORGANIZATIONS
PETROLEUM
PETROLEUM INDUSTRY
PRODUCTION
REGULATIONS
TAXES
US DEPARTMENT OF TREASURY
US IRS
US ORGANIZATIONS
WINDFALL PROFITS TAX