The Department of Revenue

Important Links

DOR Website: https://revenue.wyo.gov/

DOR Rules: https://revenue.wyo.gov/about-us/rules-and-regulations

Wyoming Statutes & Constitution:

https://www.wyoleg.gov/statestatutes/statutesconstitution?tab=0

Reconciliation Take-in-kind

Department of Revenue Rules

•Chapter 6, Section 7(a)(B)

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–…Any production which is reported as taken in kind shall be reported on actual production taken, including exempt royalty burdens, as opposed to production entitlement..

Whether and gas or oil Gross Products return, the operators designate reports the take-in-kind volumes and deducts them from the operator’s taxable volume. If there are more than three TIK interest owners, operators will need to complete a Form 4211 TIK balance sheet.

Reconciliation Take-in-kind

Forms and detailed instructions can be accessed at:

https://revenue.wyo.gov/divisions/mineral-tax/mineral-tax-forms

Form 4201

Form 4211

TIK Form 4201

TIK interest owners designate on their GP return, what their take-in-kind volume is and report it as their gross sales volume.

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Taxpayer Type “T” DO NOT complete section “C” on their GP returns. Their stripper qualification is based on whether or not the operator qualified.

If there is a difference between the volume the operator reported on a property, and what the TIK interest owner reported, the TIK will receive a 60 day discrepancy letter. The matter must be corrected within the 60 days.

Reconciliation Take-in-kind

If left unresolved, the TIK will receive an assessment letter. The assessment letter is the final administrative action, giving the taxpayer 30 days in which to appeal.

The only way discrepancies can be fixed is if the Operator submits an amending return to change the TIK volume, or the TIK interest owner submits an amending return to change their volume.

The Department merely notifies the TIK of discrepancies; we will not intervene on behalf of either party to resolve matters. The parties are required to exchange information with each other.

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The TIK can appeal the assessment with the State Board of Equalization (SBOE), but they must appeal it within the 30 days of the date on the letter.

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The Board will not accept appeals that come in after the 30 days has passed. The assessment will stand.

Reconciliation Take-in-kind

TIK Review Timing

One year after the WOGCC discrepancy notice has been issued, DOR undertakes a review of the Operator/TIK reporting.

DOR analyzes returns & issues a discrepancy notification. Usually at the end of September. One year delayed from the first WOGCC discrepancy letter

DOR sends discrepancy notifications once per year for each production year while the statute is open for amendments.

DOR assesses any underreported discrepancies 30 days prior to the statute of limitations tolling.

DOR assesses the Take in-Kind owner to match the Operator reporting in January prior to the statute of limitations tolling.

All Take in-Kind issues must be corrected prior to February 25^th of the statute of limitations year regardless of reporting extension.

Senior Tax Examiner

(Take-in-kind

& Crude oil/ stripper comparisons )

Savina Contratto

Ph: (307) 777-5236

e-mail: savina.contratto1@wyo.gov