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IRS Notice: 2022 Percentage for Determining Depletion From Marginal Wells Remains 15% (IRC §613A)

May 20, 2022, 5:00 AM

Applicable percentage for determining percentage depletion for oil and gas produced from production property in 2022 is 15%, which has stayed the same since 2001, the IRS announced May 20. Because the reference price is $65.90 for calendar year 2021 as previously announced in Notice 2022-17, and thus is higher than $20, the IRS concluded that the applicable percentage for 2022 is 15%. [Notice 2022-24, 2022-21 I.R.B. 1097 (May 23, 2022)]

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