YOUNGSTOWN, Ohio – Landowners being asked to redirect their bonus payments to others in order to reduce taxes on those payments need to be wary of such plans, a local tax lawyer warns.

George P. Millich, an attorney with Harrington, Hoppe & Mitchell, says some landowners have been encouraged to pursue arrangements that assign their lump-sum leasing bonuses to third parties that segment those payments into multiple years to ease taxes.

Such deals often involve risks beyond what landowners may realize, Millich said.

“First and foremost, the legality of such a delay to avert taxes on oil and gas bonuses is questionable,” Millich said.

“Further, if a landowner assigns his or her rights to a bonus payment to a third party and that third party becomes financially unstable, the payment may never be received,” he said. “The energy company would have no obligation to the landowner if those rights are assigned.”

Reports of bonus payments being made to thousands of local landowners have inspired high-pressure investment sales programs targeted to such landowners, Millich said.

He elaborates on the risks of such plans in a column posted Wednesday on HHM's Solutions@Law blog, located at www.hhmlaw.com/blog.

Any transaction that involves redirecting one's rights to an oil and gas bonus payment needs to be made with extreme caution, Millich said. He recommends consulting with an experienced tax attorney or advisor.

Harrington, Hoppe & Mitchell Ltd. is the area's largest law firm, with offices in Youngstown, Warren and Salem. The firm provides legal solutions to corporations, other businesses, non-profit organizations, government agencies and individuals. More information is available online at www.hhmlaw.com.

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For more information, contact:
Dan Pecchia, Pecchia Communications LLC, (330) 720-6912 or by email