Centre county Pennsylvania, USA | True story:
Several yars back a substantial check arrived by US mail. That check was from a major oil company as payment for a gas exploration lease on a farm in Marcellus shale country. The check was for the full amount of the lease, no federal tax withheld. Thinking the oil company was surely breaking the law by not withholding federal tax from that substantial payment, and not wanting to be a conspirator, the oil company was contacted and asked to explain why no federal tax was withheld from that payment.
Their answer was that federal tax matters were between the government and the lease payee (me), not between the government and the lease payor (them).
OK, next phone call was to IRS. IRS folks were very helpful, they confirmed the oil companies explanation, payors are not required to withhold federal tax although many do as a service to payees. |
Just a little heads up on taxes.
