{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2385.28","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2385.28","heading":"Remitters - Fiduciary duty - Penalties","body":"A. Any amounts withheld in accordance with the provisions of\n\nSection 2385.26 of this title shall be deemed to be held in trust\n\nfor the State of Oklahoma, and, as trustee, the remitter shall have\n\na fiduciary duty to the State of Oklahoma in regard to such amounts\n\nand shall be subject to the trust laws of this state. Any remitter\n\nwho fails to pay to the Tax Commission any amounts required to be\n\nwithheld by such remitter, after such amounts have been withheld\n\nfrom oil or gas royalty payments, and appropriates the amount held\n\nin trust to the remitter’s own use, or to the use of any person not\n\nentitled thereto, without authority of law, shall be guilty of\n\nembezzlement.\n\nB. If any remitter fails to withhold the amounts required to be\n\nwithheld by Section 2385.26 of this title and thereafter income tax\n\nis paid by the recipient of the oil or gas production payment with\n\nrespect to such payment, the amount so required to be withheld shall\n\nnot be collected from the remitter but such remitter shall not be\n\nrelieved from the liability for penalties or interest otherwise\n\napplicable because of such failure to withhold such amount.\n\nC. If a remitter fails to file a return or to pay to the Tax\n\nCommission the amounts withheld within the time prescribed by\n\nSections 2385.25 through 2385.28 of this title, there shall be\n\nimposed on the remitter a penalty equal to ten percent (10%) of the\n\namount required to be withheld, or ten percent (10%) of the amount\n\nof the underpayment of the amount required to be withheld, if such\n\nfailure is not corrected within fifteen (15) days after the tax\n\nbecomes delinquent. There shall also be imposed on such remitter\n\ninterest at the rate of one and one-quarter percent (1 1/4%) per\n\nmonth during the period such underpayment exists. For the purposes\n\nof this subsection, \"underpayment\" shall mean the excess of the\n\namount required to be paid over the amount thereof actually paid on\n\nor before the date prescribed therefor. Such penalty and interest\n\nshall be added to and become a part of the amount assessed.\n\nHowever, the Tax Commission shall not collect the penalty assessed\n\nif the remitter remits the amount required to be withheld within\n\nthirty (30) days of the mailing of a proposed assessment or\n\nvoluntarily pays such amount upon the filing of an amended return.\n\nD. Any remitter who is required under the provisions of\n\nsubsection C of Section 2385.27 of this title to furnish a statement\n\nto a recipient of oil or gas royalty payment, but who willfully\n\nfails to furnish such recipient the statement, shall be punished by\n\nan administrative fine not exceeding One Thousand Dollars\n\n($1,000.00).","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":"57e5c20687b2cde4014dbd843e02387a595b2fd614d0c0f48a2eeb10c6d32c20","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2385.27","next":"us-ok/okla.-stat.-tit.-68-68-2385.29"},"notice":"GroundRules: Original legal text. Not legal advice."}