of Past Achievements
Coalition of Publicly Traded Partnerships, a trade association representing
publicly traded partnerships and those who work with them, has had a sizeable
impact on federal tax policy towards PTPs.
Its accomplishments since its origin in 1983 include:
permanent partnership taxation for natural resources and real estate PTPs
when taxation of PTPs was included in the 1987 tax bill, and won a 10-year
grandfather period for other, Anonqualifying,@
PTPs. In 1997, the grandfather period
was extended permanently for nonqualifying PTPs willing to pay a small excise
Congressional passage in 1999 of a provision to make PTPs a qualifying
income source for mutual funds (as part of a bill vetoed by the President
for unrelated reasons). Efforts
to enact this legislation continue.
repeal in 1993 of a discriminatory provision treating all PTP income (allocated
to a tax-exempt organization), as unrelated business taxable income.
PTPs are now treated like other partnerships.
exclusion of publicly traded partnerships from several states'
that partnerships withhold tax on distributions to nonresident
partners, as well as model withholding legislation proposed by the
Multistate Tax Commission. Efforts with
respect to state tax legislation continue.
favorable clarification of the 1987 provisions from the Treasury Department
and in the 1988 technical corrections bill.
the IRS to provide a safe harbor (based on SIC codes) for determining
whether a proposed business activity is within the same line of business as
existing activities.As required by the transition rule for the 1987 legislation,
this provided "grandfathered" PTPs with the certainty needed to
plan future business activities.
the IRS to permit the use of curative allocations
in its regulations dealing with property contributed by a partner under section
with the Congressional tax committees and the Treasury Department to develop
simplified PTP tax reporting legislation.
This legislation was enacted as part of the Taxpayer Relief Act of
the Senate Finance Committee to favorably modify proposed legislation in
the 103rd Congress (not enacted) to require partnership employees (investing
in a partnership), to pay self-employment tax.
influenced Congressional legislation to regulate partnership roll-up transactions
to exclude transactions involving only PTPs, and to make the rules for covered
efforts to include the taxation of PTPs as corporations in the Deficit
Reduction Act of 1984 and the Tax Reform Act of 1986, and played an instrumental
role in removing taxation of partnerships with more than 35 partners as corporations
from the Treasury Department's 1984 tax reform proposal.
partnership provisions in the Deficit Reduction Act of 1984 that would
have adversely affected PTP operations.