Tax Audit - Oil & Gas Industry Edition Ebook

TABLE OF CONTENTS

Chapter 1 Oil and Gas Industry Overview 1-1

• Unitization 1-8
• Types of Ownership Interest 1-8
• Tract or Parcel 1-8
• Successful Efforts Method 1-9
• Separate Deposits 1-8
• Property Overview 1-7
• Mineral Interests . 1-2
• General Description of the Industry 1-2
• Full Cost Method 1-11
• Acquisition in Fee 1-3
• Acquisition Through Mineral Lease 1-2
• Accounting Records 1-12
• Accounting Methods 1-9

• Unproductive Issues 2-1
• Unique Issues 2-2
• Uniform Capitalization Rules 2-4
• Productive Issues 2-1
• Issues Related to an Oil and Gas Entity and Activity Overview 2-1
• General Issues [Non-Oil and Gas] 2-5
• Assistance in IRC Section 263A 2-5

• Units Sold 3-42
• Unitization 3-7
• Uniform Capitalization Rules -
• Transfers of Proven Properties 3-44
• Shut in Royalties 3-12
• Shooting Rights 3-13
• Royalty Income 3-11
• Property Definition 3-5
• Production Payments 3-12
• Produced Property 3-16
• Predevelopment Expenses 3-17
• Percentage Depletion 3-44
• Overhead Allocation 3-49
• Net Income of the Property 3-47
• Minimum Royalties 3-12
• Leasehold Cost 3-20
• Lease and Well Equipment 3-39
• Lease Operating Expense 3-30
• Lease Bonus 3-10
• Interest Capitalization 3-18
• Intangible Drilling Cost 3-34
• Initial Interview Questions 3-2
• Initial Information Document Request 3-3
• Independent Producer 3-44
• IRC section 263A 3-16
• Gross Income from the Property 3-45
• Gross Income 3-8
• Geological and Geophysical Costs 3-22
• Expenses of the Property 3-49
• Examination of an Oil and Gas Entity and Activity 3-1
• Engineering Referral 3-1
• Economic Interest 3-41
• Depletion 3-40
• Delay Rentals 3-11
• Damages 3-13
• Cost Depletion on Wildcat Acreage 3-43
• Cost Depletion 3-41
• Conclusion 3-19
• Bad Debts (Joint Interest Owners) 3-32
• Auditing Techniques 3-19
• Audit Techniques 3-50
• Audit Techniques 3-37
• Audit Techniques 3-27
• Areas Typical of an Oil And Gas Entity 3-8
• Allocation of Indirect Expenses 3-18
• Advance Royalties 3-11
• Adjusted Basis of Property 3-42
• Accounting Methods 3-4
• Abandonment Cost 3-25