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Backup Withholding Requirements for Deceased Royalty Owners
October 2, 2025
Q. We have a royalty owner that passed in 2015 and we have been unable to identify an heir to the property. We still use the land so we still have a liability every year. The tax ID in the system we have is incorrect and we get CP2100A notices. Should we be withholding 24% each year and remitting it to the IRS and then waiting three for the dormancy period for unclaimed funds and send the remainder to the state? It seems like a lot of work for a royalty that may still be used for many years to…
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