WorldWide Drilling Resource

49 APRIL 2022 WorldWide Drilling Resource® Nitrate Coated Premium Liners 5x6, 5x8, & 5x10 Gardner Denver 5-1/2x8 & 5-1/2x10 Gardner Denver 7-1/2x8 & 7-1/2x10 Gardner Denver Rods Heat-Treated & Chromed 5x6, 5x8, & 5-1/2x8 Gardner Denver 5x10 & 5-1/2x10 Gardner Denver 7-1/2x8 & 7-1/2x10 Gardner Denver New Pumps In Stock Gardner Denver 4x5 TEE Triplex. Gardner Denver 5-1/2x5 TEE Triplex Gardner Denver 4x5 or 4-1/2x5 Duplex Gardner Denver 5x6 Duplex Gardner Denver 5x6 Air Drive Duplex Gardner Denver 5x8 Duplex Gardner Denver 5-1/2x8 Duplex Gardner Denver 7-1/2x8 Duplex Gardner Denver 7-1/2x10 Duplex Gardner Denver 5-1/2x5 THE Triplex Gardner Denver 5x8 PAH Triplex Call for Prices. We Have a Variety of Brands of Mud Pump Parts and Power Units in Stock. Special or Obsolete Parts Made to Order. Cash for Surplus Mud Pumps. Rebuilt Mud Pumps 4-1/2x6 Gaso Duplex 4-1/2x6 Oilwell Duplex Gardner Denver 4-1/2x8 PA-8 Triplex Gardner Denver 5x6 Duplex Gardner Denver 5x10 Duplex Gaso 5x10 Duplex OVER 300 PUMPS IN STOCK Armstrong Machine Co. Inc. Pocahontas, IA 50574 USA 712-335-4131 ~ 24 Hours 7 Days a Week • Fax: 712-335-4565 800-831-4527 USA & Canada (8AM to 4PM Monday-Friday) Hydraulic Grout Pumps 5”, 6”, & 7-1/2” Drilling Into Money Not Boring by Mark E. Battersby Coping with 2022’s Uncertainty and Taxes With the drilling operation’s 2021 taxes finished or postponed until later, it’s time to think about the new ball game that is the 2022 tax bill. Oh sure, the controversial Build Better Act bill may or may not emerge to foil any planned tax savings. Far more certain, are the many changes and new taxes to be faced in 2022. Many of the potential tax savings - and currently misunderstood or neglected law provisions - were already on the books. Consider payroll tax deferment. The Coronavirus Aid, Relief and Economic Security (CARES) Act allowed employers to defer deposits and payments of their share of Social Security taxes from March 27 through December 31, 2020. While 50% of those deferred amounts was required to be deposited by December 31, 2021, any remaining amount must be deposited by January 3, 2023. The deferment of payroll taxes isn’t the only potential problem - or opportunity - many in the drilling industry will face in the months ahead. The controversy over who is and isn’t an independent contractor continues in 2022. Now is the time to ensure the independent contractors used by the drilling operation and those calling themselves independent contractors, really are. Fortunately, the Internal Revenue Service (IRS) has Form SS-8 that either workers or an employer can fill out to obtain an IRS determination on worker status. When it comes to affording to add “workers” to the payroll, the Work Opportunity Tax Credit (WOTC) is available for hiring individuals from targeted groups who have faced significant barriers in employment. The credit amount for the WOTC can be up to $9600 for each qualified new hire, depending on the targeted group the new hire is drawn from. The WOTC has been extended through 2025. This may be the time to think about another way of doing business. After all, the Tax Cuts and Jobs Act (TCJA) of 2017 dropped the top corporate rate to only 21%. While Congress has proposed increases in the corporate tax rate, the tax bills of many drilling businesses and their owners might benefit from an entity change, especially those with pass-through businesses. However, one thing that will never change is the substantial tax savings possible with planning, especially planning not at year’s end nor as the annual tax return is being prepared, but during the course of the year as the drilling business operates. Mark Mark E. Battersby may be contacted via e-mail to