Election Out of Subchapter K for Producers of Natural Gas

Streszczenie

This document contains final regulations that amend the regulations under section 761 of the Internal Revenue Code relating to the election out of subchapter K of chapter 1 of the Code. The final regulations contain certain requirements that must be met by co- producers of natural gas subject to a joint operating agreement in order to make or maintain an election under section 761. The final regulations provide that the co-producers under a joint operating agreement must use one of two permissible methods described in the regulations in reporting income from gas sales and certain related deductions and credits.