{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2369","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2369","heading":"Reports by persons making payments to taxpayers -","body":"Withholding production payments for failure to file state income tax\n\nreturn.\n\nA. Except as otherwise provided for in this section, all\n\npersons, banks or corporations, in whatever capacity acting, and\n\nwhether or not otherwise exempted from taxation under this act,\n\nincluding lessees, mortgagors of real or personal property,\n\nfiduciaries, employers and all officers or employees of the state or\n\nof any political subdivision thereof, having the control, receipt,\n\ncustody, disposal or payment of interest, income from real property\n\nand tangible personal property including rents, oil or gas\n\nproduction payments, and mining production payments, salaries,\n\nwages, premiums, annuities, compensation, remunerations, emoluments\n\nor other fixed or determinable annual or other periodical gains,\n\nprofits or income, amounting to Seven Hundred Fifty Dollars\n\n($750.00) or over, paid or payable during any year, to any taxpayer,\n\nshall make complete reports thereof, under oath, to the Tax\n\nCommission, under such rules and regulations, in such form and\n\nmanner and to such extent, as may be prescribed by it.\n\nB. Such reports may be required, regardless of amounts, (1) in\n\ncase of payments of interest upon bonds, mortgages, deeds of trust,\n\nor other similar obligations of corporations, and (2) in the case of\n\ndividend payments by corporations subject to the tax levied by this\n\nact and (3) in the case of any broker transacting any business, as\n\nsuch, for any individual subject to the provisions of this act. The\n\nTax Commission may require such corporations to state the name and\n\naddress of each shareholder, the number of shares owned by him and,\n\nin the case of a broker, it may require submission of the names of\n\nthe customer for whom such broker transacted any business, with such\n\ndetails as to profits, losses or other information as the Tax\n\nCommission may require as to each such customer. Any reports\n\nrequired under this subsection shall likewise be rendered under\n\noath, and in accordance with rules and regulations prescribed and\n\nadopted by the Tax Commission.\n\nC. Complete reports shall be required, regardless of amounts\n\nand not limited to payments exceeding Seven Hundred Fifty Dollars\n\n($750.00), for all oil, gas, or mining production payments, paid or\n\npayable during any year, to any person, as defined in Section 202 of\n\nof this title. The Tax Commission may require any person or\n\ncorporation making such production payments to report the total\n\nproduction payments made to any person during any calendar year, in\n\naddition to any other information necessary to calculate Oklahoma\n\nincome tax upon such production payments. The Tax Commission may\n\nrequire such reports from any person or corporation making\n\nproduction payments for any time period prior to the effective date\n\nof this act based on payment records that such person or corporation\n\nis required to maintain by state or federal law. For purposes of\n\nthis section, the term \"production payment\" means payments of\n\nproceeds generated from mineral interests in this state, including\n\nbut not limited to, a lease bonus, delay rental, royalty and working\n\ninterest payment, and overriding royalty interest payment.\n\nD. 1. The Tax Commission, or its duly authorized agent, is\n\nauthorized and empowered to issue orders to withhold all production\n\npayments to any person upon a determination that the person has\n\nfailed to file a state income tax return as required by law\n\nreporting production payment income or has failed to pay state\n\nincome tax. The order to withhold production payments shall be\n\ndirected to the person or corporation making production payments and\n\nshall apply to all production payments that the person named within\n\nsuch order is entitled to until the return is filed and the income\n\ntax, penalty and interest are paid. Release of the order to\n\nwithhold shall be mailed by the Tax Commission to the person or\nate\n\nincome tax. The order to withhold production payments shall be\n\ndirected to the person or corporation making production payments and\n\nshall apply to all production payments that the person named within\n\nsuch order is entitled to until the return is filed and the income\n\ntax, penalty and interest are paid. Release of the order to\n\nwithhold shall be mailed by the Tax Commission to the person or\n\ncorporation withholding production payments upon the filing of the\n\nreturn and payment of the tax, penalty and interest by the person\n\nnamed within such order or upon payment of the tax, penalty and\n\ninterest by the person or corporation withholding the production\n\npayment.\n\n2. Upon receipt of the Tax Commission order to withhold\n\nproduction payments, the person or corporation making production\n\npayments, within thirty (30) days of receiving such order, shall:\n\na. withhold payments for all production of the\n\nperson named within such order until such order is released by the\n\nTax Commission,\n\nb. hold in suspense all production payments subject\n\nto such order to withhold, and\n\nc. in the case of established delinquent income\n\ntax, upon receiving such order from the Tax Commission of such\n\nestablished delinquency, pay the tax, penalty and interest out of\n\nthe withheld production payments and receipt such tax payment to the\n\ntaxpayer in lieu of cash in settlement for such production.\n\nThe order to withhold shall apply to production payments in any case\n\nwhere a successor person or corporation is required to make\n\nproduction payments and to production payments of subsequent\n\nproduction of minerals in this state. Any person or corporation\n\nthat withholds production payments or pays same to the Tax\n\nCommission pursuant to such order is hereby relieved of all\n\nliability for such acts.\n\n3. The Tax Commission shall mail notice to each delinquent\n\ntaxpayer at the last-known address reported by the person or\n\ncorporation making production payments at least twenty (20) days\n\nprior to issuance of an order to withhold production payments. The\n\nnotice shall contain a statement that the taxpayer has failed to\n\nfile an income tax return as required by law or has failed to pay\n\ndelinquent income tax. An order to withhold production payments may\n\nbe issued by the Tax Commission, or its duly authorized agent, for\n\ncollection of any delinquent income tax, penalty and interest owed\n\nby the taxpayer entitled to production payments.\n\n4. Any person or corporation making production payments who\n\nrefuses or fails tofile the reports required by this section, in the\n\nmanner and at the time prescribed by the Tax Commission, shall be\n\nsubject to a penalty in the amount of One Hundred Dollars ($100.00)\n\nfor each day such report is delinquent. Any person or corporation\n\nmaking production payments who refuses to withhold payments shall be\n\nsubject to a penalty in the amount of One Hundred Dollars ($100.00)\n\nfor each payment made which was ordered to be withheld. All\n\npenaltiesassessed pursuant to this subsection shall be collected and\n\napportioned in the same manner as the state income tax.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"60f36c2ba4e7c7aef90ce953500e22af26abadd87b507ad05f1a68ed05c5a5b5","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2368.9","next":"us-ok/okla.-stat.-tit.-68-68-237"},"notice":"GroundRules: Original legal text. Not legal advice."}