Coalition of

Publicly  

Traded  

Partnerships__________________________________

 

REGULATORY INFORMATION

   The Coalition of Publicly Traded Partnerships monitors the Treasury Department and other federal agencies for regulations and other guidance affecting PTPs.  Sometimes proposed regulations in the partnership area have an unfavorable impact on PTPs, often because the unique concerns of PTPs have not been considered in developing the regulations.  When that happens, the Coalition works to modify the regulations so that the final product will be fair and workable for PTPs as well as for other partnerships.

Summary and links to full text of recently issued regulations.

 

Recent Coalition Activity on Regulatory Issues  

Comments to FERC on Income Tax Allowance

 

On January 21, 2005, the Coalition filed comments with the Federal Energy Regulatory Commission in response to its Inquiry on Income Tax Allowances (Docket No. PL05-5-000).  The Inquiry was issued following the Federal Court of Appeals' (D.C. Circuit) decision in BP West Coast Producers, LLC which rejected the rationale behind the Lakehead doctrine (which gives PTPs an incomee tax allowance in rate making, but only to the extent of corporate ownership) and remanding the case in question.   The Coalition's comments urge FERC to provide all PTPs with a full tax allowance, regardless of the extent of corporate ownership, on the basis that 1) FERC should not distinguish between businesses owned by a single corporate entity and those owned collectively by partners; 2) the Administration, Congress, and FERC have a clear policy of encouraging investment in energy infrastructure;  3) PTPs are increasingly the means for channeling such investment; and 4) denial of a tax allowance will adversely affect the rate of return balance that have made PTPs a workable means of attracting investment capital for pipelines.

 

Click here for a copy of the Coalition's comments.

 

Comments to IRS on Tax Withholding for Foreign Partners

On November 13, 2003, the Coalition sent a letter to the IRS requesting clarification regarding  PTPs' obligation, under the proposed regulations regarding withholding under I.R.C. section 1446, to notify nominees for foreign unitholders of distributions with "effectively connected income."

 

Coalition letter to the IRS on 1446 regulations