My mineral rights ownership account was recently transferred from Apache to Hilcorp, which has been sending me communications that are not clear. Now Hilcorp has sent me a form called an “Owner’s or Remittee’s Agreement to Pay Withholding on Behalf of a Pass-through Entity or Remitter”. Could someone please help me understand this document, and describe what circumstances would legitimately require my signature? Hilcorp’s accompanying letter is written as if for someone with a legal degree, which I lack.
New Mexico requires that oil company withhold New Mexico State income tax from royalties unless you sign the form stating that you will be paying the taxes, by quarterly estimated payments and filing a New Mexico tax return. I think you need to be a New Mexico resident or have principal place of business in New Mexico. Here is link - https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2022/12/B-200.25.pdf
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Thank you for clarifying.