After finalizing a transfer of ownership of mineral rights from my deceased parents, I have received a division order letter telling me to submit my SS # (again) to a 2 month old company. I have not received any notification from the original companies that I established the transfer ownership with. Is this normal? Am I expected to submit my SS # to every future division order letter that I receive or risk not being paid royalties? I am skeptical and it doesn’t seem right that the original companies wouldn’t be the one contacting me nor that I could be expected to submit my SS # with no discretion. Is this legit? Please advise.
Welcome to the forum. Yes, you will need to give your SS# or EIN number on every Division Order. Some states require a Division Order before issuing payment (Texas for example). Other states, such as Oklahoma do not require a Division Order to be signed as a “Letter in Lieu of Division Order” can be sent instead, but all of them need the W-9 so that taxes can be properly accounted for.
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This is a standard protocol. You can elect not to provide your SS, but you will either have an automatic income tax withholding applied or they may place funds in suspense pending a W-9.