Federal Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests

Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests
Form 8924 (Rev. December 2013)
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8924

Excise Tax on Certain Transfers of Qualifying
Geothermal or Mineral Interests

Form
(Rev. December 2013)
Department of the Treasury
Internal Revenue Service

▶

OMB No. 1545-2099

Information about Form 8924 and its instructions is at www.irs.gov/form8924.
Employer identification number

Name of entity
Number, street, and room or suite no. (If a P.O. box, see instructions)
City or town, state or province, country, and ZIP or foreign postal code

Tax Computation
1
2

Date of sale or other disposition (MM/DD/YYYY) . . . . . . . . . . . . . . . .
If the property was sold or exchanged, enter the sales price of the interest transferred. If the
property was leased, enter the income realized as a result of the transfer . . . . . . . .

2

3

Cost or other basis of interest transferred. Enter -0- if the property was leased .

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4

Gain or income realized. Subtract line 3 from line 2. If zero or less, enter -0- .

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5

Fair market value of the interest transferred as of the date shown on line 1

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Multiply line 5 by 20% (.20) .

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Multiply line 4 by 35% (.35) .

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Tax. Add lines 6 and 7

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Tax paid with Form 7004 .

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Tax due. Enter the excess, if any, of line 8 over line 9

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Overpayment. Enter the excess, if any, of line 9 over line 8

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11

Paid
Preparer
Use Only

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Sign
Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature
Print/Type preparer’s name

Date
Preparer's signature

Title
Date

Check
if
self-employed

▶

Firm's EIN

Firm's address ▶

Phone no.

Firm's name

For Paperwork Reduction Act Notice, see instructions.

Section references are to the Internal Revenue
Code.

Future Developments
For the latest information about developments
related to Form 8924 and its instructions, such
as legislation enacted after they were published,
go to www.irs.gov/form8924.

• A transfer in which the previous transferor was
relieved of liability for the Form 8924 tax.

General Instructions

• The transferee is an eligible entity which
provides the transferor with a qualifying letter of
intent at the time of the transfer,

Purpose of Form
Use Form 8924 to report and pay the excise tax
on certain transfers of qualifying geothermal or
mineral interests.

Who Must File
An eligible entity who subsequently transfers
ownership or possession (by sale, exchange, or
lease) of a qualifying mineral or geothermal
interest must file Form 8924 for each transfer of
an interest acquired, directly or indirectly, in:

Relief from liability. An eligible entity is not
required to file Form 8924 if:

• The transferee is not an eligible entity but
establishes to the satisfaction of the Secretary of
the Treasury that the transfer of ownership or
possession will be consistent with section 170(h)
(5) and provides the transferor with a qualifying
letter of intent at the time of the transfer, or
• Form 8924 tax has previously been paid as a
result of a previous transfer of ownership or
possession of the same interest.

▶

Form 8924 (Rev. 12-2013)

Cat. No. 37736P

• A conservation sale in which the previous
transferor excluded 25% of the qualifying gain,
or

PTIN

When To File
File Form 8924 by the 90th day following the
taxable transfer. If you need more time to file,
use Form 7004, Application for Automatic 6Month Extension of Time To File Certain
Business Income Tax, Information, and Other
Returns, by the due date of Form 8924. Form
7004 does not extend the time for payment of
tax.

Amended Return
To amend a previously filed Form 8924, file a
corrected Form 8924 and write “Amended” at
the top of the form.

Where To File
Send Form 8924 to the following address.
Department of the Treasury
Internal Revenue Service Center
Cincinnati, OH 45999

Form 8924 (Rev. 12-2013)

Rounding Off to Whole Dollars
You may show money items on the return as
whole dollars. To do so, drop any amount less
than 50 cents and increase any amount from 50
cents through 99 cents to the next higher dollar.

Signature
See the instructions for the signature section of
your federal income tax return.

Interest and Penalties
Interest. Interest is charged on taxes not paid
by the due date at a rate determined under
section 6621.
Late filing of return. A penalty of 5% a month
or part of a month, up to a maximum of 25%, is
imposed on the net amount due if Form 8924 is
not filed when due.
Late payment of tax. Generally, the penalty for
not paying tax when due is 1/2 of 1% of the
unpaid amount, up to a maximum of 25%, for
each month or part of a month the tax remains
unpaid. The penalty is imposed on the net
amount due.

Definitions
Bureau of Land Management land. This term
means the Bureau of Land Management land
and any federally-owned minerals located south
of the Blackfeet Indian Reservation and east of
the Lewis and Clark National Forest to the
eastern edge of R. 8 W., beginning in T. 29 N.
down to and including T. 19 N. and all of T. 18
N., R. 7 W.
Conservation sale. A conservation sale means
a sale which meets the following requirements.
• The transferee of the qualifying mineral or
geothermal interest is an eligible entity.
• At the time of the sale, the transferee provides
the transferor with a qualifying letter of intent.
• The sale is not made under an order of
condemnation or eminent domain.
Eligible entity. An eligible entity means:
• A governmental unit referred to in section
170(c)(1) or an agency or department thereof
operated primarily for one or more of the
conservation purposes specified in section170(h)
(4)(A)(i), (ii), or (iii), or
• An entity that is described in section 170(b)(1)
(A)(vi) or section 170(h)(3)(B) and organized and
at all times operated primarily for one or more of
the conservation purposes specified in section
170(h)(4)(A)(i), (ii), or (iii).
Eligible federal land. The term eligible federal
land means the Bureau of Land Management
land and the Forest Service land, as generally
depicted on the map entitled “Rocky Mountain
Front Mineral Withdrawal Area” and dated
January 8, 2007. You can view an electronic
version of the map at www.fs.fed.us/land/staff/
rocky_mtn_front_withdrawal.shtml.
Forest Service land. This term means the
Forest Service land and any federally-owned
minerals located:
• In the Rocky Mountain Division of the Lewis
and Clark National Forest, including the
approximately 356,111 acres of land made
unavailable for leasing by the August 28, 1997,
Record of Decision for the Lewis and Clark
National Forest Oil and Gas Leasing

Page

Environmental Impact Statement and that is
located from T. 31 N. to T. 16 N. and R. 13 W.
to R. 7 W.; and
• Within the Badger Two Medicine Area of the
Flathead National Forest including the land
located in T. 29 N. from the western edge of R.
16 W. to the eastern edge of R. 13 W., and the
land located in T. 28 N., Rs. 13, and 14 W.
Qualifying letter of intent. A qualifying letter of
intent means a written letter of intent that
includes the following statement.
“The transferee’s intent is that this acquisition
will serve one or more of the conservation
purposes specified in clause (i), (ii), or (iii) of
section 170(h)(4)(A) of the Internal Revenue
Code of 1986, that the transferee’s use of the
deposits so acquired will be consistent with
section 170(h)(5) of such Code, and that the use
of the deposits will continue to be consistent
with such section, even if ownership or
possession of such deposits is subsequently
transferred to another person.”
Qualifying mineral or geothermal interest. A
qualifying mineral or geothermal interest means
an interest in any mineral or geothermal deposit
located on eligible federal land that constitutes
the transferor’s entire interest in the deposit.
An interest in any mineral or geothermal is not
the transferor’s entire interest if the interest in
that mineral or geothermal deposit was divided in
order to avoid the requirements of a qualifying
mineral or geothermal interest or section 170(f)(3)
(A).
The transferor’s entire interest in such deposit
does not fail to be a qualifying mineral or
geothermal interest solely because the transferor
has retained an interest in other deposits, even if
the other deposits are contiguous with such
certain deposit and were acquired by the
transferor along with such certain deposit in a
single conveyance.

Specific Instructions
Name and address. Enter the name shown on
the eligible entity’s most recently filed federal
income tax return. If the Post Office does not
deliver mail to the street address and the entity
has a P.O. box, show the box number instead of
the street address.
Foreign Address. Follow the country's practice
for entering the postal code. In some countries
the postal code may come before the city or
town name. Enter the full name of the country
using uppercase letters in English.

Tax Computation
Line 10
The tax due must be paid in full when Form
8924 is filed. Make the check or money order
payable to “United States Treasury.” Write the
entity’s name, address, employer identification
number, and “Form 8924” on the check or
money order.

Line 11
The IRS will refund the amount on line 11 if no
other taxes are owed.

2

Paid Preparer Use Only
A paid preparer must sign Form 8924 and
provide the information in the Paid Preparer Use
Only section at the end of the form if the preparer
was paid to prepare the form and is not an
employee of the filing entity. The preparer must
give you a copy of the form in addition to the
copy to be filed with the IRS.
If you are a paid preparer, enter your Preparer
Tax Identification Number (PTIN) in the space
provided. If you work for a tax preparation firm,
you must also enter the firm's name, address,
and EIN. However, you cannot use the PTIN of
the tax preparation firm in place of your PTIN.
You can apply for a PTIN online or by filing
Form W-12, IRS Paid Preparer Tax Identification
Number (PTIN) Application and Renewal. For
more information about applying for a PTIN
online, visit the IRS website at www.irs.gov/ptin.
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