Welcome to Production Tax Consultants
Production Tax Consultants, LLC specializes in helping oil and gas clients realize considerable tax
savings through our unique, customized data-driven approach.
Transform Your Production Data
into
Tax Refunds
with data-analytics-driven strategies
- Bringing in-depth knowledge of the prevailing statutes, rules and policies, and the ability to harness both operational and accounting aspects of oil and gas fields for your express benefit
- Using customized diagnostic and predictive data analytics to drive solutions that recover the most severance tax refunds out of your data
- Helping streamline your analytics to develop efficient tax saving processes
Our Services
We Offer an Array of Tax Accounting Services that target the needs of oil and gas companies
Pay only what you owe!
Reduce your tax liability by claiming expenses incurred in order to get produced gas from the wellhead to market as “Marketing Cost” deductions.
Production Tax Consultants performs detailed studies of our clients’ operational structure, field equipment, lease operating expenses, and assets available for depreciation. This analysis results in substantial refunds of historical Severance Taxes paid on natural gas production, reduction of your current and future tax liabilities, and prospective savings on a go-forward basis.
Our data-analytics-driven approach delivers:
- A true “work-back” method to identify gas marketing expenses incurred between the mouth of the well and the sales point
- Substantiation of all findings with evidence from field visits to your properties and statistical sampling of the expenses
- Efficient management of your refund claim handled by highly experienced severance tax professionals, who apply focused audit analytic techniques
- Insights used as input into modeling of optimum tax savings processes, customized for your operations
Lower your average tax rate
Missed incentives lead to unclaimed tax refunds and a higher tax burden. Most often, this is due to the lack of usable and/or connected data sources. We can help Increase your asset value by bridging this gap.
Through years of experience, Production Tax Consultants professionals have developed solutions incorporating the Railroad Commission and Comptroller datasets to identify incentive markers based on production data of your wells, and those operated by other producers in your region.
Our team works with you to:
- Identify, certify, and apply for the best incentives that bring the most value to your company (this includes, but is not limited to, High-Cost Gas and Low-Producing (Oil/Gas) Well exemptions)
- Provide periodic look-back monitoring and refund filing support
Maximize your gas contract savings
Are your gas contracts set up to maximize the amount of tax reimbursement received? Our team can review and amend your existing contracts, as needed, to gather these savings going forward.
Better records. Better value.
Do you need assistance with Severance Tax return filings or clearing account errors? Our team can help you streamline the filing process to reduce your workload, review and clear any existing problems, and set up process checks to prevent future filing mistakes.
- Severance Tax History – Providing your production and tax history in a user-friendly and easily manageable format.
- Account Error Notices – Clearing any pre-existing account error notices, by filing correcting amendments.
- EDI Setup – Implementing EDI filing processes via user-friendly spreadsheets and other tools to significantly reduce the time required to complete your monthly filings ─ from a couple of days to a few hours.
Your first line of defense.
Revenue audits can often be tedious, time consuming, and can result in liabilities for any company.
- Negotiate to reduce liabilities
- Convert any liabilities into possible refunds, including elimination of related penalties and interest
- Effectively present supporting information to reduce the time of audit
Take command of your own data and processes
“The goal is to turn data into information, and information into insight.” – Carly Fiorina, former executive, president, and chair of Hewlett-Packard
Most companies have the personnel and resources, but not necessarily the processes, to actualize all available tax savings. We like to help clients implement and take more charge of their own processes through training and awareness.
We offer training in these 5 key steps to go from data to tax savings:
- Define the type of tax savings you want to target and understand the processes behind it. This involves detailing the steps to file for well exemptions or claim marketing cost deductions.
- Collect and compile data from different systems – Cost Accounting, Revenue Accounting, and Production, to name a few.
- Analyze your data to identify and isolate the different components relevant to the process. This involves some mathematical and statistical computations to transform the data into meaningful information.
- Document the results of your analysis to mitigate any future audit risks.
- Streamline the above processes in a manner that it would not impede the day-to-day business activities.
Get in touch with one of our experts
FAQs
We start by discussing the taxpayer's tax savings opportunities. We analyze the taxpayer's projects and transactions to see if they qualify for marketing costs, tax reimbursements and other severance tax savings and then we file for refunds.
We provide our services on a competitive contingency or fee for service basis. We do not get paid until we get you the refunds.
Our clients’ time is very important to us and we are very sensitive to the fact that these projects are only a small part of their myriads of responsibilities. We encourage our clients to participate in these projects as much as they would like to be involved, but we provide a true turn-key job.
Marketing cost refund projects are typically approved through audits and we would handle all the auditors and the necessary details at our offices.
Yes, voluntary amendments to your Severance Tax returns are necessary to receive the refunds for the prior periods. We not only file the voluntary amendments on your behalf but also clear out all the error notices, including pre-existing ones and thereby expediting your refund process.
Resources
Oil and Gas Severances Taxes by State – NCLS
Technological developments have increased access to oil and natural gas reserves across the country. Over the past several years… →
Railroad Commission of Texas’ Oil & Gas Division
The Railroad Commission, through its Oil and Gas Division, regulates the exploration, production, and transportation of oil and natural gas… →
Texas Natural Gas Production Tax – Texas Comptroller
Natural gas taxes are primarily paid by a producer. Depending on the contract between producer and purchaser, both parties can agree that a purchaser will pay the natural gas taxes… →
