Is It Safe to sign a W9 Form?

A relative received a W9 form which also included a letter about Division Orders. I think the W9 form is a Federal Government form so that seems safe to sign but any letter about Division Orders scares him. Should he sign them? The W9 form includes 3 pages.

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Permalink Reply by cmorris on January 31, 2013 at 9:47am

Fang is right. And, if you don't send back the W9 form, most companies will put your royalty revenue in suspense until they receive it.

Permalink Reply by Clinton44 on January 29, 2013 at 12:47pm

Jeff the W9 form is so the government knows who is responsable for paying income tax on the royalties.

As far as the division orders, they are a good thing that means your relative will soon be receiving royalties. If he is uncomfortable determining if the decimal interst is correct he could consult his accountant or lawyer.

Also at least in PA each seperate well should be listed on the division order.

Permalink Reply by LW on January 29, 2013 at 1:15pm
I called the gas conpanies to get an explanation of the division orders because I was not understanding. 4 companies, 4 division orders all different. It did make sense and I was able to calculate correctly to what they had.
Permalink Reply by Clinton44 on January 29, 2013 at 1:31pm

Yes LW,

I should have added that comment as well, we were dealing with two units, nine wells, and three joint venture partners all sending division orders. It did take a while, several calls and many emails to the division order anylyst's at each company untill it was explained to our accountants satisfaction...

I must add another bit of information one of the gas companies analysts actually caught an error in a royalty percentage they were paying 12.5 % on some of the wells instead of 15% it was corrected back to the first day of production.

So contrary to some of the statements sometimes seen on this forum there are honest people within the gas companies rank and file employees!!

Permalink Reply by Tim Tarr on January 30, 2013 at 1:10pm

Just make a few phone calls first to confirm it's from where it says. Or better yet drop it off at "local" office.

You don't want just anyone to have info on that W-9. Think credit fraud. Better safe than sorry.

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