IB Knowledge Base

Withholding on Publicly Traded Partnerships (“PTPs”) Effective Jan 2023

Information on Irish Interest Withholding

How to solve: "Another user is running Tax Optimizer"

Connecticut Sales and Use Tax

Chicago Personal Property Tax

How to update the US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) on your account

Withholding Tax on Dividend Equivalent Payments - FAQs

Common Reporting Standard (CRS)

FATCA Procedures - Grantor Trust Tax Information Submission

Interactive Brokers is required to collect certain documentation from clients to comply with U.S. Foreign Account Tax Compliance Act (“FATCA”) and other international exchange of information agreements.

U.S. Tax Classification

1. Tax Form Collection

2. Classification for US Tax Purposes

3. Identify Grantors

Entity and FATCA Classification for Non-Financial Entities

Interactive Brokers is required to collect certain documentation from clients to comply with U.S. Foreign Account Tax Compliance Act (“FATCA”) and other international exchange of information agreements.

U.S. Tax Classification

1. Tax Form Collection

2. Classification for US Tax Purposes

3. Identify Grantors

Top Tags

Background:

As a result of U.S. Internal Revenue Regulations taking effect 1 January 2023, new withholding charges will be applied to sales proceeds from certain Publicly Traded Partnerships ("PTPs”) held by investors who are not U.S. taxpayers. The IRS withholding charges are substantial, therefore, Interactive Brokers has taken steps to limit access to these products for investors who might be unaware of the risks of investing in these PTP products.

Instructions on How to Access PTP Products are available below in this document.

What you need to know:

Amount of Withholding: 10% of sale or distribution proceeds. This means 10% of the amount of funds that would settle resulting from any transaction or distribution, not just 10% on any calculated profit.

Example of PTP withholding:

Buy 200 shares @ 50.
Transaction value = $10,000
Sell 200 shares @ 51.
Transaction value = $10,200
Profit = $200.
Withholding = $1020 USD

Assuming no tax reclaim requests, the loss in value to the investor would be $820

Affected Instruments: Please see the list at the end of this article. The list is maintained on a best efforts basis and there may be some timing issues as information is refreshed. Listed deliverable securities are in scope of the new regulation. Options and other derivative instruments with a PTP as the underlying security are not subject to withholding. However, if the option or derivative is converted into a PTP interest, a subsequent sale of such PTP security would be subject to withholding.

Special Exemptions: The IRS regulation provides issuers the ability to get an exemption from the PTP withholding requirement. The exemption is valid for 92 days, and issuers are required to re-certify with the IRS to extend the duration of the exemption. IBKR will try, on a best-efforts basis, to publish which of the affected instruments have an operating exemption, but investor’s should ensure they are choosing products whose withholding conditions they fully understand. The issuer document that provides for a withholding exemption is generally referred to as a "Qualified Notice"

What Investors are affected: All investors who are not considered ‘resident’ for U.S. tax purposes, i.e. investors who are not subject to U.S. taxation and tax reporting (and therefore doesn't file a W-9 IRS tax form).

Reporting: Withholding will be reported on the year-end Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding.

How to Access PTP Products as a Non-US Taxpayer: Please login to Client Portal and create a web ticket through the Message Center. The summary of the message should read "Access to PTP Products" and the body of the message should have a request to enable trading for PTP symbols.

Additional Resources: For those interested in understanding additional information about the new regulation, please see the IRS website for IRC Sec. 1446(f): http://www.irs.gov/individuals/international-taxpayers/partnership-withholding

PTP Instruments

This list identifies PTP securities which may be subject to withholding under the IRS Regulation referenced above. The products are presented in 2 groups: those with a "Qualified Notice” exemption, and those "without Qualified Notice". The lists are shown on a best efforts basis for convenience only. IBKR does not guarantee the accuracy or timeliness of the information, and investors should independently verify that products in which they are invested in, or intend to invest, have the necessary exemptions to avoid punitive withholding outcomes. Duration of the exemptions should also be monitored by position holders in the instruments.

PTP Securities with known Qualified Notice

ISIN	Symbol	Name
US92891H1014	SVIX	-1X SHORT VIX FUTURES ETF
US92891H3093	UVIX	2X LONG VIX FUTURES ETF
US0917491013	BITW	BITWISE 10 CRYPTO INDEX FUND
BMG162341090	BBU	BROOKFIELD BUSINESS PT-UNIT
BMG162522756	BIP PRB	BROOKFIELD INFRASTRUCTUR
BMG162521014	BIP	BROOKFIELD INFRASTRUCTURE PA
USG162522670	BIP PRA	BROOKFIELD INFRASTRUCTURE PARTNERS LP
BMG162491499	BPYPP	BROOKFIELD PROPERTY PART
BMG162491564	BPYPO	BROOKFIELD PROPERTY PART
BMG162491648	BPYPN	BROOKFIELD PROPERTY PART
BMG162582313	BEP PRA	BROOKFIELD RENEWABLE PAR
BMG162581083	BEP	BROOKFIELD RENEWABLE PARTNER
CA16141A1030	CSH.UN	CHARTWELL RETIREMENT RESIDEN
US21258A2015	SPKX	CONVXTY SHS 1X SPIKES FUTUR
US21258A1025	SPKY	CONVXTY SHS DAILY 1.5X SP FU
US26800L1008	WEIX	DYNAMIC SHORT SHORT
CA3874371147	GRP U	GRANITE REAL ESTATE INVESTME
US88166A8053	DEFI	HASHDEX BITCOIN FUTURES ETF
US46140H1068	DBA	INVESCO DB AGRICULTURE FUND
US46140H7008	DBB	INVESCO DB BASE METALS FUND
US46138B1035	DBC	INVESCO DB COMMODITY INDEX T
US46140H3049	DBE	INVESCO DB ENERGY FUND
US46139B1026	DBV	INVESCO DB G10 CURRENCY HARV
US46140H6018	DGL	INVESCO DB GOLD FUND
US46140H4039	DBO	INVESCO DB OIL FUND
US46140H5028	DBP	INVESCO DB PRECIOUS METALS F
US46140H2058	DBS	INVESCO DB SILVER FUND
US46141D2036	UUP	INVESCO DB US DOLLAR INDEX B
US46141D1046	UDN	INVESCO DB US DOLLAR INDEX B
US46428R1077	GSG	ISHARES S&P GSCI COMMODITY I
BMG540501027	LAZ	LAZARD LTD-CL A
BMG1624R1079	BPYPM	NEW LP PREFERRED UNITS CAD
CA70214T1012	PVF.PR.U	PARTNERS VALUE INVEST LP
CA70214T1194	PVF.UN	PARTNERS VALUE INVESTMENTS I
US74347W1302	SVXY	PROSHARES SHORT VIX ST FUTUR
US74347Y8883	UCO	PROSHARES ULTRA BLOOMBERG CR
US74347Y8701	BOIL	PROSHARES ULTRA BLOOMBERG NA
US74347W8745	ULE	PROSHARES ULTRA EURO
US74347W6012	UGL	PROSHARES ULTRA GOLD
US74347W3530	AGQ	PROSHARES ULTRA SILVER
US74347Y8396	UVXY	PROSHARES ULTRA VIX ST FUTUR
US74347W2706	YCL	PROSHARES ULTRA YEN
US74347Y7976	SCO	PROSHARES ULTRASHORT BLOOMBE
US74347Y8131	KOLD	PROSHARES ULTRASHORT BLOOMBE
US74347W8828	EUO	PROSHARES ULTRASHORT EURO
US74347W3951	GLL	PROSHARES ULTRASHORT GOLD
US74347Y8479	ZSL	PROSHARES ULTRASHORT SILVER
US74347W5691	YCS	PROSHARES ULTRASHORT YEN
US74347W3381	VIXM	PROSHARES VIX MID-TERM FUT
US74347Y8545	VIXY	PROSHARES VIX SHORT-TERM FUT
US85814R2067	SPLP PRA	STEEL PARTNERS HOLDINGS LP
US88166A7063	TAGS	TEUCRIUM AGRICULTURAL FUND
US88166A1025	CORN	TEUCRIUM CORN FUND
US88166A6073	SOYB	TEUCRIUM SOYBEAN FUND
US88166A4094	CANE	TEUCRIUM SUGAR FUND
US88166A5083	WEAT	TEUCRIUM WHEAT FUND
US91288X1090	UNL	UNITED STATES 12 MONTH NATUR
US91288V1035	USL	UNITED STATES 12 MONTH OIL
US91167Q1004	BNO	UNITED STATES BRENT OIL FUND
US9117171069	USCI	UNITED STATES COMMODITY INDE
US9117181043	CPER	UNITED STATES COPPER INDEX
US91201T1025	UGA	UNITED STATES GAS FUND LP
US91232N2071	USO	UNITED STATES OIL FUND LP
US9123183009	UNG	US NATURAL GAS FUND LP

PTP Securities without Qualified Notices

ISIN	Symbol	Name
US28252B3096	-	1847 HOLDINGS LLC
US28252B8046	EFSH	1847 HOLDINGS LLC
US00434L1098	-	ACCESS MIDSTREAM PARTNERS LP
US0093661058	AIRL	AIRLEASE LTD
US01855A1016	AC	ALLIANCE CAP MGMT LP
US01861G1004	AHGP	ALLIANCE HOLDINGS GP LP
US01877R1086	ARLP	ALLIANCE RESOURCE PARTNERS
US01881G1067	AB	ALLIANCEBERNSTEIN HOLDING LP
US02052T1097	ALDW	ALON USA PARTNERS LP
US02364V1070	-	AMERICA FIRST MULTIFAMILY IN
US02364V2060	ATAX	AMERICA FIRST MULTIFAMILY IN
US02364Y1010	AFREZ	AMERICA FIRST REAL ESTATE INVESTMENT PARTNERS
US02520N1063	APO	AMERICAN COMMUNITY PROPERTIE
CA0266951064	HOT.UN	AMERICAN HOTEL INCOME PROPER
US0268621028	AIA	AMERICAN INSD MTG INVS
US02752P1003	-	AMERICAN MIDSTREAM PARTNERS
US0291692087	ACP PR	AMERICAN REAL ESTATE PRTNRS: ACP PR
US0291691097	ACP	AMERICAN REAL ESTATE PTNR-LP
US0293162055	-	AMERICAN RESTAURANT PRTNR LP
US0309751065	APU	AMERIGAS PARTNERS-LP
US02686F1030	AIJ	AMERN INSD MTG INVS L P 86
US02686G1013	AIK	AMERN INSD MTG INVS L P 88
US0293161065	XXMUT	AMERN RESTAURANT PARTNERS
US03350F1066	ANDX	ANDEAVOR LOGISTICS LP
US03673L1035	-	ANTERO MIDSTREAM PARTNERS LP
GB00B15Y0C52	AAAA	AP ALTERNATIVE ASSETS LP
US0376123065	-	APOLLO GLOBAL MANAGEMENT - A
US0376124055	APO PRA.O	APOLLO MANAGEMENT LLC
US0376125045	APO PRB.O	APOLLO MANAGEMENT LLC
US03879N1019	ARCX	ARC LOGISTICS PARTNERS LP
US30225N1054	EXLP	ARCHROCK PARTNERS LP
US03957U1007	APLP	ARCHROCK PARTNERS LP
US04014Y1010	-	ARES MANAGEMENT LP
US04014Y2000	ARES PRA.	ARES MGMT LP PFD UNIT SER A
US04929Q1022	-	ATLAS ENERGY GROUP LLC
US04939R1086	-	ATLAS ENERGY LP
US04930A1043	ATLS	ATLAS ENERGY LP
US0493031001	ATN	ATLAS ENERGY RESOURCES LLC
US0493921037	APL	ATLAS PIPELINE PARTNERS LP
US0493923017	APL PRECL	ATLAS PIPELINE PARTNERS, L.P. CUMV
US04941A4085	ARPPQ	ATLAS RESOURCE PARTNERS
US04941A1016	ARPJQ	ATLAS RESOURCE PARTNERS LP
US04941A5074	ARNPQ	ATLAS RESOURCE PARTNERS
US0548071028	AZLCZ	AZTEC LAND & CATTLE LTD
US05501X1000	AZURQ	AZURE MIDSTREAM PARTNERS LP
US0806941029	OZ	BELPOINTE PREP LLC
US09225M1018	BSM	BLACK STONE MINERALS LP
US0925ESC094	BHL.ESC	BLACKROCK DEFINED OPPORTUNIT - ESCROW
US09253U1088	-	BLACKSTONE GROUP LP/THE
US09625U2087	BKEPP	BLUEKNIGHT ENERGY PARTNERS - SERIES A PREF UNIT
US09625U1097	BKEP	BLUEKNIGHT ENERGY PARTNERS L
US0966271043	BWP	BOARDWALK PIPELINE PARTNERS
US0556EL1098	BPMP	BP MIDSTREAM PARTNERS LP
US26923H2004	BDRY	BREAKWAVE DRY BULK SHIPPING
US1067761072	BBEPQ	BREITBURN ENERGY PARTNERS LP
US1067761155	BBPPQ	BREITBURN ENG PARTNERS LP CUM REDEE
BMG162491077	BPY	BROOKFIELD PROPERTY PARTNERS
US1181671058	BGH	BUCKEYE GP HOLDINGS LP
US1182301010	BPL	BUCKEYE PARTNERS LP
US1272072075	CSD PRA	CADBURY SCHWEPPES DEL L P
US1314761032	CLMT	CALUMET SPECIALTY PRODUCTS
TC0001464281	ACE PRB	CAPITAL RE LLC: 7.65% CUM "MIPS"
US14309L1026	-	CARLYLE GROUP INC/THE
US1501851067	FUN	CEDAR FAIR -LP
US15188T1088	-	CENTERLINE HOLDING CO
US1534231089	ENGY	CENTRAL ENERGY PARTNERS LP
US14309L2016	TCGP	CG 5 7/8 PERP PFD
US1609081096	CHC	CHARTERMAC
US16411Q1013	CQP	CHENIERE ENERGY PARTNERS LP
US1651851099	CHKR	CHESAPEAKE GRANITE WASH TRUS
US16524K1088	-	CHESAPEAKE MIDSTREAM PARTNER
US12547R1059	CIFC	CIFC LLC
US18383H1014	-	CLAYMORE MACROSHARES OIL DOW
US18383R1095	-	CLAYMORE MACROSHARES OIL UP
US12592V1008	-	CNX COAL RESOURCES LP
US12654A1016	CNXM	CNX MIDSTREAM PARTNERS LP
US1982811077	CPPL	COLUMBIA PIPELINE PARTNERS L
US20467A1016	GSJK	COMPRESSCO PARTNERS LP
US20588V3078	CAG PRB	CONAGRA CAP L C: CAG PRB
US2068121092	-	CONE MIDSTREAM PARTNERS LP
US20855T1007	CCR	CONSOL COAL RESOURCES LP
US21038E1010	-	CONSTELLATION ENERGY PARTNER
GG00B1WR8K11	CCAP	CONVERSUS CAPITAL
US2128491030	CWPS	CONWEST PARTNERSHIP LP-UNITS
US2172021006	CPNO	COPANO ENERGY LLC-UNITS
US2189161043	CNPP	CORNERSTONE PROPANE PARTNERS
US2263443077	CEQP PR	CRESTWOOD EQUITY PARTNER
US2263441097	-	CRESTWOOD EQUITY PARTNERS LP
US2263442087	CEQP	CRESTWOOD EQUITY PARTNERS LP
US2263721001	-	CRESTWOOD MIDSTREAM PARTNERS
US2263781070	CMLP	CRESTWOOD MIDSTREAM PARTNERS
US22676R1150	KWH.UN	CRIUS ENERGY TRUST
US22758A1051	CAPL	CROSSAMERICA PARTNERS LP
US22765U1025	-	CROSSTEX ENERGY LP
US2284391057	CRPPE	CROWN PAC PARTNERS L P
US12637A1034	CCLP	CSI COMPRESSCO LP
US1266331065	-	CVR PARTNERS LP
US1266332055	UAN	CVR PARTNERS LP
US12663P1075	CVRR	CVR REFINING LP
US2327511075	-	CYPRESS ENVIRONMENTAL PARTNE
US23311P3082	DCP PRC	DCP 7.95 PERP PFD - DCP MIDSTREAM LP
US23311P1003	DCP	DCP MIDSTREAM L.P.
US23311P2092	DCP PRB	DCP MIDSTREAM LP
US24664T1034	DKL	DELEK LOGISTICS PARTNERS LP
US25490F2092	BARS	DIREXION DAILY GOLD BEAR 3X
US25490F1003	BAR	DIREXION DAILY GOLD BULL 3X
US2574541080	-	DOMINION ENERGY MIDSTREAM PA
US25820R1059	DMLP	DORCHESTER MINERALS LP
US2650261041	DEP	DUNCAN ENERGY PARTNERS LP
US2662242039	DQ PRA	DUQUESNE CAP L P
SGXC28500103	LIW	EAGLE HOSPITALITY TRUST
US26985R1041	EROC	EAGLE ROCK ENERGY PARTNERS
US26827L1098	ECTM	ECA MARCELLUS TRUST I
US2837021086	EPB	EL PASO PIPELINE PARTNERS LP
US29102H1086	EMESQ	EMERGE ENERGY SERVICES LP
US2921021000	ESBA	EMPIRE STATE REALTY OP LP-ES
US2921023089	FISK	EMPIRE STATE REALTY OP -S250
US2921022099	OGCP	EMPIRE STATE REALTY OP-S60
US2924801002	ENBL	ENABLE MIDSTREAM PARTNERS LP
US29250R1068	EEP	ENBRIDGE ENERGY PARTNERS LP
US29257A1060	ENP	ENCORE ENERGY PARTNERS-LP
US29273V1008	ET	ENERGY TRANSFER LP
US29273V6056	ET PRE	ENERGY TRANSFER LP 7.6% PERP PFD U
US29273V5066	ET PRD	ENERGY TRANSFER LP 7.625% PERP PFD
US29273V4077	ET PRC	ENERGY TRANSFER LP
US29278N1037	ETP	ENERGY TRANSFER OPERATING LP
US29278N5095	ETP PRE	ENERGY TRANSFER OPERATNG
US29278N3017	ETP PRC	ENERGY TRANSFER PARTNERS
US29273R1095	-	ENERGY TRANSFER PARTNERS LP
US29278N4007	ETP PRD	ENERGY TRANSFER PARTNERS
US29336U1079	ENLK	ENLINK MIDSTREAM PARTNERS LP
TC0001373946	ECTPQ	ENRON CAP LLC
US29357D2080	ECSPQ	ENRON CAPITAL RESOURCES 9% CUM RED PFD
US2937161063	EPE	ENTERPRISE GP HOLDINGS LP
US2937921078	EPD	ENTERPRISE PRODUCTS PARTNERS
US29414J1079	-	ENVIVA PARTNERS LP
US26885J1034	EQGP	EQGP HOLDINGS LP
US26885B1008	EQM	EQM MIDSTREAM PARTNERS LP
US092ESC0377	BGIO.ESC	ESC BGIO LIQUIDATION TRUST
US26926V1070	EVEPQ	EV ENERGY PARTNERS LP
US30053M1045	SNMP	EVOLVE TRANSITION INFRASTRUC
US30304T1060	FSG	FACTORSHARES 2X: GOLD-S&P500
US30304P1049	FOL	FACTORSHARES 2X: OIL-S&P500
US3030461061	FSE	FACTORSHARES 2X: S&P500-TBD
US3030481028	FSU	FACTORSHARES 2X: S&P500-USD
US3030471045	FSA	FACTORSHARES 2X: TBD-S&P500
US3152933087	FGPRB	FERRELLGAS PARTNERS LP-B
US3152931008	FGPRQ	FERRELLGAS PARTNERS-LP
US3152932097	FGPR	FERRELLGAS PARTNERS-LP
US30242M1062	XXFPL	FFP PARTNERS -LP-CL A
US34552U1043	FELPQ	FORESIGHT ENERGY LP
US34958B1061	-	FORTRESS INVESTMENT GRP-CL A
US34960P2002	FTAIP	FORTRESS TRANS & INFRAST
US34960P3091	FTAIO	FORTRESS TRANS & INFRAST
US34960P4081	FTAIN	FORTRESS TRANS & INFRAST
US34960P1012	FTAI	FORTRESS TRANSPORTATION-CL A
US36761Q1058	GWYGU	GATEWAY GARAGE PARTNERS LLC
US3719271047	GEL	GENESIS ENERGY L.P.
US37959R1032	GBLI	GLOBAL INDEMNITY GROUP LLC-A
US37946R1095	GLP	GLOBAL PARTNERS LP
US37946R2085	GLP PRA	GLOBAL PARTNERS LP
US37946R3075	GLP PRB	GLOBAL PARTNERS LP
US38349K1051	GDVTZ	GOULD INVESTORS LP
US3860872098	GRM PRA	GRAND MET DEL L P
US3932211069	GPP	GREEN PLAINS PARTNERS LP
US39525T1007	-	GREENHAVEN COAL FUND
US3952581060	-	GREENHAVEN CONTINUOUS CMDTY
US40274U1088	GTM	GULFTERRA ENERGY PARTNERS LP
US4038291047	GYRO	GYRODYNE LLC
US40636T2033	HRY	HALLWOOD RLTY PARTNERS L P
BMG4285W1001	HRBGF	HARBOR GLOBAL COMPANY LTD
US41988L2025	NNUTU	HAWAIIAN MACADAMIA NUT ORCHA
US4223571039	HTLLQ	HEARTLAND PARTNERS LP-A
US4269181081	HPG	HERITAGE PROPANE PRTNRS LP
US4281041032	-	HESS MIDSTREAM PARTNERS LP
US4283371098	HCRSQ	HI-CRUSH INC
US43129M1071	HPGP	HILAND HOLDINGS GP LP
US4312911039	HLND	HILAND PARTNERS LP
US4357631070	HEP	HOLLY ENERGY PARTNERS LP
US4511001012	IEP	ICAHN ENTERPRISES LP
US4511002002	IEP PRCL	ICAHN ENTERPRISES LP
US4511001194	IEPRR	ICAHN ENTERPRISES LP-RIGHT
US45661Q1076	NRGP	INERGY HOLDINGS LP
US4566151035	-	INERGY LP
US45671U1060	-	INERGY MIDSTREAM LP
US4608852053	IGLPA	INTERSTATE GEN L P
US4642941078	ALT	ISHARE DIVERSIFIED ALT TRUST
US45032K1025	CMDT	ISHARES COMMODITY OPTIMIZED
US46643C1099	JPEP	JP ENERGY PARTNERS LP
US4841691078	KPP	KANEB PIPE LINE PARTNERS L P
US4841731098	KSL	KANEB SERVICES LLC
US4945501066	KMP	KINDER MORGAN ENERGY PRTNRS
GB00B13BNQ35	KKR	KKR & CO (GUERNSEY) LP
US48248M2017	KKR PRA.O	KKR & CO LP
US48248M3007	KKR PRB.O	KKR 6 1/2 12/31/49 PFD
US48248A3068	KFN	KKR FINANCIAL HOLDINGS LLC
US48248A6038	KFN PRCL	KKR FINANCIAL HOLDINGS
US48268Y1010	KSP	K-SEA TRANSPORTATION PARTNER
US5053461068	LAACZ	LAACO LTD-UNITS OF LTD PRTNS
US51508J2078	LMRKP	LANDMARK INFRASTRUCTURE
US51508J1088	LMRK	LANDMARK INFRASTRUCTURE PART
US51508J4058	LMRKN	LANDMARK INFRASTRUCTURE PARTNERS LP
US51508J3068	LMRKO	LANDMARK INFRASTRUCTURE
US5248141005	-	LEHIGH GAS PARTNERS LP
US5327711025	-	LIN MEDIA LLC - A
US5357631069	LNKE	LINK ENERGY LLC
US5360201009	LINEQ	LINN ENERGY LLC-UNITS
US50214A1043	LRE	LRR ENERGY LP
US55608B1052	MIC.USD	MACQUARIE INFRASTRUCTURE HOL
US55610T1025	-	MACROSHARES $100 OIL DOWN
US55610W1053	-	MACROSHARES $100 OIL UP
US55610X1037	DMM	MACROSHARES MAJ MET HOU DOWN
US55610R1068	UMM	MACROSHARES MAJ MET HOU UP
US55610N1054	DCR	MACROSHARES OIL DOWN TRADEABLE
US55610L1098	UCR	MACROSHARES OIL UP TRADEABLE T
US55610T2015	DOY	MACROSHARES USD 100 OIL DOWN
US55610W2044	UOY	MACROSHARES USD 100 OIL UP
US55907R1086	MGG	MAGELLAN MIDSTREAM HOLDINGS
US5590801065	MMP	MAGELLAN MIDSTREAM PARTNERS
US5707591005	MWE	MARKWEST ENERGY PARTNERS LP
US57118V1008	-	MARLIN MIDSTREAM PARTNERS LP
US5733311055	MMLP	MARTIN MIDSTREAM PARTNERS LP
US5860481002	MEMPQ	MEMORIAL PRODUCTION PARTNERS
US55271M2061	MUK PRA	MEPC INTL CAP L P
US59140L1008	IDIV	METAURUS US EQUITY CUMULATIV
US59140L2097	-	METAURUS US EQUITY EX DIVIDE
US59564N1037	MEP	MIDCOAST ENERGY PARTNERS LP
US59560V1098	-	MID-CON ENERGY PARTNERS LP
US59560V2088	MCEP	MID-CON ENERGY PARTNERS LP
US6050342061	ME PRA	MISSION CAP L P
US6050343051	ME PRB	MISSION CAP L P: ME PRB
US55307U1079	-	ML MACADAMIA ORCHARDS LP-UT
US55336V1008	MPLX	MPLX LP
US62624B1017	-	MUNICIPAL MORTGAGE & EQUITY
US55406N1037	MYTH	MYT HLDG LLC BE+
US63900P1030	-	NATURAL RESOURCE PARTNERS LP
US63900P4000	NSP	NATURAL RESOURCE PARTNERS LP -PARTNERSHIP UNITS
US63900P6088	NRP	NATURAL RESOURCE PARTNERS LP
US63900P5098	NSP	NATURAL RESOURCE PARTNERS LP
US6442061049	NEN	NEW ENGLAND REALTY ASSOC-LP
US64881E1091	NSLPQ	NEW SOURCE ENERGY PARTNERS L
US64881E3071	NUSPQ	NEW SOURCE ENG PARTNERS LP 11%SR A
US64ESC19977	NYRT.ESC	NEW YORK REIT INC - ESCROW
US6514261089	NHL	NEWHALL LAND & FARMING CO
US62913M2061	NGL PRB	NGL 9 PERP PFD
US62913M1071	NGL	NGL ENERGY PARTNERS LP
US62913M3051	NGL PRC	NGL ENERGY PARTNERS LP
US6546781013	NKA	NISKA GAS STORAGE PARTNERS-U
US65506L1052	NBLX	NOBLE MIDSTREAM PARTNERS LP
US6658261036	NTI	NORTHERN TIER ENERGY LP
US67058H3003	NS PRB	NSUS 7 5/8 PERP PFD
US67058H2013	NS PRA	NSUS 8 1/2 12/31/49
US6294221063	NLP	NTS REALTY HOLDINGS LP
US67058H1023	NS	NUSTAR ENERGY LP
US67058H4092	NS PRC	NUSTAR ENERGY LP
US67059L1026	-	NUSTAR GP HOLDINGS LLC
US67074P1049	CFD	NUVEEN DIVERSIFIED COMMODITY
US6707311089	CTF	NUVEEN LONG/SHORT COMMODITY
US6740011027	OKCMZ	OAKTREE CAP GROUP-UTS CL A
US6740012017	OAK	OAKTREE CAPITAL GROUP LLC
US6740013007	OAK PRA	OAKTREE CAPITAL GRP LLC
US6740014096	OAK PRB	OAKTREE CAPITAL GRP LLC
US67420T2069	OMP	OASIS MIDSTREAM PARTNERS LP
US67551U1051	-	OCH-ZIFF CAPITAL MANAGEMEN-A
US67091N1081	OCIP	OCI PARTNERS LP
US67081B1061	-	OCI RESOURCES LP
US6780491071	OILT	OILTANKING PARTNERS LP
US68268N1037	OKS	ONEOK PARTNERS LP
US6710281089	OSP	OSG AMERICA LP
US6918071019	OXF	OXFORD RESOURCE PARTNERS LP
US6931391071	PNG	PAA NATURAL GAS STORAGE LP
US69422R1059	PPX	PACIFIC ENERGY PARTNERS LP
US69318Q1040	PBFX	PBF LOGISTICS LP
CA7069025095	-	PENGROWTH ENERGY TRUST-A
US70788P1057	-	PENN VIRGINIA GP HOLDINGS LP
US7078841027	-	PENN VIRGINIA RESOURCE PARTN
US7093111042	PTXP	PENNTEX MIDSTREAM PARTNERS L
US71672U1016	PDH	PETROLOGISTICS LP
US55406N2027	PFDM	PFD MYT HLDG CO BE+
US7185492078	PSXP	PHILLIPS 66 PARTNERS LP
US7192171012	PLP	PHOSPHATE RESOURCE PRTNRS L.P.
US72388B1061	PSE	PIONEER SOUTHWEST ENERGY PAR
US7265031051	PAA	PLAINS ALL AMER PIPELINE LP
US69341H1059	GFWQZ	PLM EQUIPMENT GROWTH FD III
US7328571077	POPE	POPE RESOURCES
US73936B4086	-	POWERSHARES DB AGRICULTURE F
US73936B7055	-	POWERSHARES DB BASE METALS F
US73935S1050	-	POWERSHARES DB COMMODITY IND
US73936B1017	-	POWERSHARES DB ENERGY FUND
US73935Y1029	-	POWERSHARES DB G10 CURR HARV
US73936B6065	-	POWERSHARES DB GOLD FUND
US73936B5075	-	POWERSHARES DB OIL FUND
US73936B2007	-	POWERSHARES DB PREC METALS F
US73936B3096	-	POWERSHARES DB SILVER FUND
US73936D2062	-	POWERSHARES DB US DOL IND BE
US73936D1072	-	POWERSHARES DB US DOL IND BU
SGXC75818630	OXMU	PRIME US REIT
US74347W5360	FUTS	PROSHARES MANAGED FUTURES ST
US74347W7424	-	PROSHARES SHORT EURO ETF
US74347W6277	-	PROSHARES SHORT VIX ST FUTUR
US74347W4942	GDAY	PROSHARES ULT AUSTRALIAN DOL
US74347W7754	-	PROSHARES ULT DJ-UBS NAT GAS
US74347W1062	-	PROSHARES ULTRA BLOOMBERG CO
US74347W2888	UCD	PROSHARES ULTRA BLOOMBERG CO
US74347W6509	-	PROSHARES ULTRA BLOOMBERG CR
US74347W2474	-	PROSHARES ULTRA BLOOMBERG CR
US74347W3209	-	PROSHARES ULTRA BLOOMBERG CR
US74347W1229	-	PROSHARES ULTRA BLOOMBERG NA
US74347Y7067	-	PROSHARES ULTRA BLOOMBERG NA
US74347W2961	-	PROSHARES ULTRA BLOOMBERG NA
US74347W5022	-	PROSHARES ULTRA DJ-UBS CRUDE OIL
US74347W8414	-	PROSHARES ULTRA SILVER
US74347W6350	-	PROSHARES ULTRA VIX ST FUTUR
US74347W4116	-	PROSHARES ULTRA VIX ST FUTUR
US74347W3464	-	PROSHARES ULTRA VIX ST FUTUR
US74347W2540	-	PROSHARES ULTRA VIX ST FUTUR
US74347W1633	-	PROSHARES ULTRA VIX ST FUTUR
US74347W5444	-	PROSHARES ULTRA VIX ST FUTUR
US74347W3795	-	PROSHARES ULTRA VIX ST FUTUR
US74347W3126	-	PROSHARES ULTRA VIX ST FUTUR
US74347W2391	-	PROSHARES ULTRA VIX ST FUTUR
US74347W1484	-	PROSHARES ULTRA VIX ST FUTUR
US74347W8661	-	PROSHARES ULTRA YEN
US74347W2219	-	PROSHARES ULTRAPRO 3X CRUDE
US74347W2136	-	PROSHARES ULTRAPRO 3X SHORT
US74347Y8057	-	PROSHARES ULTRAPRO 3X SHORT
US74347W4603	CROC	PROSHARES ULTRASHORT AUD
US74347Y8214	-	PROSHARES ULTRASHORT BLOOMBE
US74347W6681	-	PROSHARES ULTRASHORT BLOOMBE
US74347W3878	-	PROSHARES ULTRASHORT BLOOMBE
US74347Y8628	-	PROSHARES ULTRASHORT BLOOMBE
US74347W6764	CMD	PROSHARES ULTRASHORT BLOOMBE
US74347W7002	-	PROSHARES ULTRASHORT GOLD
US74347W7184	-	PROSHARES ULTRASHORT GOLD
US74347W8331	-	PROSHARES ULTRASHORT SILVER
US74347W6434	-	PROSHARES ULTRASHORT SILVER
US74347W7267	-	PROSHARES ULTRASHORT SILVER
US74347W1146	-	PROSHARES ULTRASHORT SILVER
US74347W8588	-	PROSHARES ULTRASHORT YEN
US74347W7671	-	PROSHARES ULTSHRT DJ-UBS NAT
US74347W6848	-	PROSHARES VIX MID-TERM FUT
US74347W3613	-	PROSHARES VIX SHORT-TERM FUT
US74347W6921	-	PROSHARES VIX SHORT-TERM FUT
US74347W2623	-	PROSHARES VIX SHORT-TERM FUT
US74347W1716	-	PROSHARES VIX SHORT-TERM FUT
US74347W2052	-	PROSHRE U/S DJ-AIG COMMODITY
US74347W8091	-	PROSHRE U/S DJ-AIG CRUDE OIL
CA74624AUSD4	RUF.U	PURE MULTI-FAMILY REIT LP
CA74624A1084	RUF.UN	PURE MULTI-FAMILY REIT LP
US6936651016	PVR	PVR PARTNERS LP
US74735R1150	QEPM	QEP MIDSTREAM PARTNERS LP
US74734R1086	QRE	QR ENERGY LP
US74836B2097	-	QUEST ENERGY PARTNERS LP
US74839G1067	-	QUICKSILVER GAS SERVICES LP
US75885Y1073	RGP	REGENCY ENERGY PARTNERS LP
US7601131003	RNF	RENTECH NITROGEN PARTNERS LP
US76090H1032	QSP.U	RESTAURANT BRANDS EXCHANGE UNITS
CA76090H1038	QSP.UN	RESTAURANT BRANDS-EXCH UNITS
US76218Y1038	-	RHINO RESOURCE PARTNERS LP
US76218Y2028	-	RHINO RESOURCE PARTNERS LP
US7628191006	RMP	RICE MIDSTREAM PARTNERS LP
US7672711097	-	RIO VISTA ENERGY PARTNERS LP
US7771491054	RRMS	ROSE ROCK MIDSTREAM LP
US78028T1007	-	ROYAL HAWAIIAN ORCHARDS LP
GG00BKTRRM22	RTW	RTW VENTURE FUND LTD
US79971C2017	-	SANCHEZ MIDSTREAM PARTNERS L
US79971A1060	-	SANCHEZ PRODUCTION PARTNERS
US79971C1027	-	SANCHEZ PRODUCTION PARTNERS
US80007T1016	SDTTU	SANDRIDGE MISSISSIPPIAN TRUS
US80007V1061	SDRMU	SANDRIDGE MISSISSIPPIAN TRUS
US80007A1025	-	SANDRIDGE PERMIAN TRUST
MHY737602026	SRG U	SEANERGY MARITIME CORP-UNITS
MHY737601036	-	SEANERGY MARTIME HOLDINGS CORP
US81662W1080	-	SEMGROUP ENERGY PARTNERS LP
US8226341019	SHLX	SHELL MIDSTREAM PARTNERS LP
US1724641097	SIRE	SISECAM RESOURCES LP
US26923H1014	RISE	SIT RISING RATE ETF
US84130C1009	SXEEQ	SOUTHCROSS ENERGY PARTNERS L
US84756N1090	SEP	SPECTRA ENERGY PARTNERS LP
US8493431089	SRLP	SPRAGUE RESOURCES LP
US85512C2044	SGH	STAR GAS PTNRS,LP SR SB UTS
US85814R3057	SPLP PRT	STEEL PARTNERS HLDS LP
US85814R1077	SPLP	STEEL PARTNERS HOLDINGS LP
US86183Q1004	-	STONEMOR PARTNERS LP
US86324B1035	BNPC	STREAM S&P DYN GLOBAL COMM
US8644821048	SPH	SUBURBAN PROPANE PARTNERS LP
US8661421029	-	SUMMIT MIDSTREAM PARTNERS LP
US8661424098	SMLP	SUMMIT MIDSTREAM PARTNERS LP
US86722Y1010	SXCP	SUNCOKE ENERGY PARTNERS LP
US86764L1089	-	SUNOCO LOGISTICS PARTNERS L.P
US86765K1097	SUN	SUNOCO LP
US8692391035	-	SUSSER PETROLEUM PARTNERS LP
US8746971055	TEP	TALLGRASS ENERGY PARTNERS LP
US87611X2045	NGLS PRA	TARGA RESOURCES PARTNERS
US87611X1054	NGLS	TARGA RESOURCES PARTNERS LP
US87233Q1085	TCP	TC PIPELINES LP
US8723841024	TPP	TEPPCO PARTNERS LP
US8810052014	TNH	TERRA NITROGEN COMPANY LP
US88160T1079	-	TESORO LOGISTICS LP
US88166A3005	CRUD	TEUCRIUM CRUDE OIL FUND
US88166A2015	NAGS	TEUCRIUM NATURAL GAS FUND
US89376V1008	TLP	TRANSMONTAIGNE PARTNERS LP
SGXC39411175	ODBU	UNITED HAMPSHIRE US REIT
US91733T3077	USOU	UNITED STATES 3X OIL FUND
US91733T4067	-	UNITED STATES 3X SHORT OIL F
US91733T5056	USOD	UNITED STATES 3X SHORT OIL F
US9117182033	USAG	UNITED STATES AGRICULTURE IN
US9117831084	UHN	UNITED STATES DIESEL-HEATING
US91204P1075	-	UNITED STATES HEATING OIL LP
US9117183023	USMI	UNITED STATES METALS INDEX F
US91232N1081	-	UNITED STATES OIL FUND LP
US9126132052	DNO	UNITED STATES SHORT OIL FUND
US9134301046	UCLP	UNIVERSAL COMPRESSION PARTNE
US9123181029	-	US NATURAL GAS FUND LP
US9123182019	-	US NATURAL GAS FUND LP
US9123181102	-	US NATURAL GAS FUND LP
US9034171036	USSPQ	US SHIPPING PARTNERS LP
US90290N1090	USAC	USA COMPRESSION PARTNERS LP
US9033181036	USDP	USD PARTNERS LP
US91914J1025	VLP	VALERO ENERGY PARTNERS LP
US91914G1085	VEH	VALERO GP HOLDINGS LLC
US91913W1045	VLI	VALERO LP
US92205F2056	VNRAQ	VANGUARD NATURAL RESOU
US92205F4037	VNRCQ	VANGUARD NATURAL RESOU
US92205F1066	VNRSQ	VANGUARD NATURAL RESOURCES
US92205F3047	VNGBQ	VANGUARD NATURAL RESOURCES LLC RED
KYG9325C1050	VTDRF	VANTAGE DRILLING INTERNATION
US93964X1063	WPG	WASHINGTON PG INC UNRESTRICTED SHARES
US95825R1032	-	WESTERN GAS EQUITY PARTNERS
US9582541044	-	WESTERN GAS PARTNERS LP
US9586691035	WES	WESTERN MIDSTREAM PARTNERS L
US95931Q2057	WNRL	WESTERN REFINING LOGISTICS L
US9604171036	WLKP	WESTLAKE CHEMICAL PARTNERS L
US96108P1030	WMLPQ	WESTMORELAND RESOURCE PARTNE
US96949L1052	WPZ	WILLIAMS PARTNERS LP
US96950F1049	WPZ.USD	WILLIAMS PARTNERS LP
US96950K1034	WMZ	WILLIAMS PIPELINE PARTNERS L
US976ESC3018	FUR.ESC	WINTHROP REALTY TRUST - ESCROW
US97718T1051	TONS	WISDOMTREE COAL FUND
US97718W1080	GCC.USD	WISDOMTREE CONTINUOUS COMMOD
US98159G1076	WPT	WORLD POINT TERMINALS LP
US92930Y1073	-	WP CAREY & CO LLC

Tax Reporting

Overview:

The Irish Tax Authority requires IBKR to collect withholding tax on interest earned in Ireland. This withholding is at a rate of 20% and must be deducted from interest payments to your account.

Please note withholding tax applies to all clients who are resident in Ireland, whether individuals (including partnerships) or companies.

Withholding tax does not apply to clients who are companies in countries that are members of the European Union (excluding Ireland) or companies in countries that have a Double Tax Agreement (DTA) with Ireland.

For other clients in the EU (excluding Ireland) or if you are a non-resident of Ireland but tax resident in a country with a Double Tax Agreement (DTA) with Ireland, you may complete Form 8-3-6, that will reduce or eliminate your withholding tax. In addition to providing your information, you will need to have the form completed by the tax authority in the country where you are a tax resident.

You will require the following information in order to complete Form 8-3-6.

1. Client name (please ensure this matches the name on your IBKR account).

2. Client address.

3. Tax reference number in country of residence.

4. The country in which the client is resident for tax.

5. The rate of withholding tax between the country of tax residence and Ireland (see below).

6. Signature.

7. Date.

On completion of the form, you should submit it to the local tax authority in the country of your residence. The local tax authority must sign and stamp the form. As per below, Form 8-3-6 has been translated into French, German, Spanish, Italian and Dutch.

Once you receive the completed form from your local tax authority, please email a PDF or JPEG copy of the fully signed form to tax-withholding@interactivebrokers.com.

Please note, the withholding tax rate depends on the DTA between Ireland and your country of tax residence which can be found on the Irish Revenue website https://www.revenue.ie/en/tax-professionals/tax-agreements/rates/index.aspx

For your convenience, we have prepared the forms to include items 3 to 5 above for all countries in the European Economic Area (“EEA”). Clients will need to complete the other items in 1 to 7 above.

For clients outside the EEA please use this form when the withholding tax rate is 0% and this form in all other cases.

1. EEA countries with 0% Withholding Tax.

Austria	Denmark	Hungary	Netherlands/Formulier 8-3-6. Rente
Croatia	Finland	Iceland	Slovakia
Czech Republic	France/Form 8-3-6. Intérêts	Luxembourg	Spain/Formulario 8-3-6. Intereses
Cyprus	Germany/Formular 8-3-6. Zinsen	Malta	Sweden

2. EEA countries with rates above 0% Withholding Tax.

Belgium	Greece	Lithuania	Romania
Bulgaria	Italy/Modulo 8-3-6. Interessi	Poland	Slovenia
Estonia	Latvia	Portugal

3. Other countries with a DTA with Ireland (* denotes where there is 0% withholding tax in all situations).

Albania *	Georgia	Moldova	Singapore
Armenia	Ghana	Montenegro	South Africa*
Australia	Hong Kong	Morocco	South Korea*
Bahrain*	India	New Zealand	Switzerland*
Belarus	Israel	North Macedonia*	Thailand
Bosnia & Herzegovina*	Japan	Norway	Turkey
Botswana	Kazakhstan	Pakistan	Ukraine
Canada	Kenya	Panama	United Arab Emirates*
Chile	Kosovo	Qatar*	United Kingdom*
China	Kuwait*	Russian Federation*	United States of America*
Egypt	Malaysia	Saudi Arabia*	Uzbekistan
Ethiopia	Mexico	Serbia	Vietnam
			Zambia*

Tax Reporting

Background:

How do I launch the Tax Optimizer?

To launch Tax Optimizer, login to Client Portal and select Reports followed by Tax Documents. Once you have selected a Day, click on Launch Tax Optimizer. For additional details, please consult the Client Portal Users' Guide

Requirements:

Tax Optimizer requires the presence of a Java Runtime Environment (JRE) installed on your machine. Should you not have a JRE installed, please go to the web page java.com and install the latest one by clicking the button "Free Java Download". Please follow the instructions on the Java download page to complete the installation.
Your operating system should be configured to open the .jnlp files within the Java Runtime Environment. This configuration should be automatically set during the JRE installation. If, for some reason, the file association is broken, we recommend to reinstall the JRE to instate it again.

How to overcome the error message "Another user is running Tax Optimizer"?

1. Log in to the IBKR Client Portal

2. Click the "Profile icon" in the upper right corner of the IBKR Client Portal and click on Log Out

3. Continue selecting one of the two options according to your operating system:

If you use Windows
If you use Mac OS

If you use Windows

a. Press CTRL + ESC on your keyboard

b. Start directly typing the word "Java" and then click on Configure Java from the search results

c. In the Java Control Panel, click on Settings...

d. Click on the Delete Files...

e. This will open Delete Files and Applications window. Check all options listed, then click on OK

f. Once you have cleared your Java cache, log back into the Client Portal and try launching Tax Optimizer again. You should now be able to open the application. If you are still not able to launch the Tax Optimizer and you receive the same error as before (Another user is running Tax Optimizer), please perform the additional steps below:

g. Press the key combination Win(Windows Key) + E and navigate to the directory: C:\Users\<your windows user>\ibto

h. Select all files in the ibto folder, right-click on the selection and choose Send to > Compressed (zipped) folder. The zipped file will be created in the same ibto directory

i. Compose a New Ticket in the Message Center, informing us of this issue. Please attach the Zip file you created at the previous step (h.) to your ticket

If you use Mac OS

a. Click on Apple icon on the top left and select System Preferences

b. Click on the Java icon located at the bottom to open the Java Control Panel

c. In Java Control Panel, navigate to Web Settings > Temporary Files Settings, then click on Delete Files

d. This will open the Delete Files and Applications window. Check all options listed, then click on OK

e. Once you have cleared your Java cache, log back into the Client Portal and try launching Tax Optimizer again. You should now be able to open the application. If you are still not able to launch the Tax Optimizer and you receive the same error as before (Another user is running Tax Optimizer), please perform the additional steps below:

f. Press the key combination CMD + SHIFT + H, then go to folder ibto

g. Select all files in the ibto folder, right-click and select Compress 6 Items. The zipped folder will be created in the same directory

h. Compose a New Ticket in the Message Center, informing us of this issue. Please attach the Zip file you created at the previous step (g.) to your ticket

References:

Tax Optimizer Users' Guide

The state of Connecticut imposes a sales and use tax which is applicable to online access to information including all data and access fees.

The tax rate as of 2017 is 1% and is applicable to clients with the state of legal residency of Connecticut or a Connecticut permanent/resident address.

The sales and use tax will be applied to all research and market data subscriptions as well as special connections such as VPN, IB Gateway, Extranet and Dedicated Leased Lines.

The sales and use tax will be passed through to client accounts at the time of the subscription billing. The tax is only applicable if a monthly fee is charged, therefore should an account receive a waiver the sales and use tax will similarly be waived.

Chicago has a personal property tax which applies to a non-possessory computer lease by a Chicago resident. The Chicago tax authorities have ruled that tax is to be applied in cases where a customer pays for electronic research/use of an interactive site. The passive receipt or streaming of information is not subject to the tax.

Clients whose permanent residential address or principal business address is Chicago will have this tax passed through to their accounts.

The tax rate, as of October 2017, is 9%. The tax will be charged on the research and news feeds a client is subscribed to. Should a research and news feed be eligible to a waiver based upon commissions generated, the tax will not be applied.

As of October 2017, research and news subscriptions which would be subject to the tax would include

Base IBIS Research Platform and the IBIS Research Essentials Subscription Bundle
Cusip
Dow Jones News Service
Dow Jones Real Time News
US Press Release Feed
Reuters Global Newswire
Reuters StreetEvents Calendars
Reuters Fundamentals
Reuters Basic Newfeed
Morningstar Equity, ETF and Credit Reports
Wall Street Horizons
Zacks Equity Research Reports

The above list is provided on a best efforts basis and is subject to change. Clients will be responsible for any pass through tax regardless of any discrepancy from the list provided above.

Background:

If you have been informed or believe that your account profile contains an incorrect US SSN/ITIN, you may simply log into your Account Management to update this information. Depending on your taxpayer status, you can update your US SSN/ITIN by modifying one of the following documents:

1) IRS Form W9 (if you are a US tax resident and/or US citizen holding a US SSN/ITIN)

2) IRS Form W-8BEN (if you are a Non-US tax resident holding a US SSN/ITIN)

Please note, if your SSN/ITIN has already been verified with the IRS you will be unable to update the information. If however the IRS has not yet verified the ID, you will have the ability to update through Account Management.

How to Modify Your W9/W8

1) To submit this information change request, first login to Account Management

2) Click on the Settings section followed by Account Settings

3) Find the Profile(s) section. Locate the User you wish to update and click on the Info button (the "i" icon) to the left of the User's name

4) Scroll down to the bottom where you will see the words Tax Forms. Next to it will be a link with the current tax form we have for the account. Click on this tax form to open it

5) Review the form. If your US SSN/ITIN is incorrect, click on the UPDATE button at the bottom of the page

6) Make the requisite changes and click the CONTINUE button to submit your request.

7) If supporting documentation is required to approve your information change request, you will receive a message. Otherwise, your information change request should be approved within 24-48 hours.

Background

Beginning January 1, 2017, new IRS regulations will impose U.S. withholding taxes on US dividend equivalent payments to non-US persons holding derivative positions on US equities. Previously, US withholding tax was not imposed on these payments. The regulations require intermediaries, such as us, to act as withholding agents and collect US tax on behalf of the IRS. An overview of the tax, how it’s determined and the products impacted is provided below.

Overview

What is the purpose of the regulation?

The regulation derives from Section 871(m) of the Internal Revenue Code and is intended to harmonize the US tax treatment imposed on non-U.S. persons with respect to dividends on U.S. stock and dividend equivalent payments paid on derivative contracts that replicate (to a high degree) ownership of such stock.

An example of this would be a total return swap having IBM as its underlying. A non-U.S. person holding an IBM stock position would be subject to a 30% US withholding tax (reduced by treaty) on dividend payments. On the other hand prior to the implementation of Section 871(m), a non-U.S. person holding long exposure to IBM on the swap could receive payments equivalent to the dividends without imposition of U.S. withholding tax. This was the case even though the payments replicated similar economic exposure. Section 871(m) now considers those ‘dividend equivalent payments’ subject to US withholding tax.

What is a dividend equivalent payment?

A dividend equivalent payment is any gross amount that references the payment of a dividend on a U.S. equity and that is used to compute any net amount transferred to or from the long party, even if the long party make a net payment to the short party or the net payment is zero. Accordingly, such payments would include not only an actual payment in lieu of a dividend but also an estimated dividend payment that is implicitly taken into account in computing one or more of the terms of the transaction, including interest rate, notional amount or purchase price.

In the case of a listed call option on a U.S. stock, for example, the holder of the call is not entitled to receive a dividend unless the option is exercised prior to the dividend ex-date. Nonetheless, the premium paid by the holder to purchase the option implicitly takes into account the present value of the expected dividends over the option term.[1] Since this factor serves to lower the payment from the option buyer to the seller, it is viewed as a dividend equivalent payment potentially subject to the rules.

Who is subject to the dividend equivalent withholding tax?

The tax applies to qualifying positions held in an account of a non-U.S. taxpayer. It does not apply to U.S. taxpayers. Accounts of non-U.S. taxpayers generally are evidenced by the submission of an IRS Form W-8 and can include the following account types: individual, joint, organization and trust.

What derivative instruments potentially are subject to the dividend equivalent withholding tax?

The regulations adopt a two-part test to determine if a derivative instrument is subject to the rules. First, the derivative instruments must reference the dividend on a U.S. equity security. Examples include:

- equity options

- regulated single stock futures

- regulated index futures and options on index futures

- structured and exchange traded notes

- CFD contracts

- convertible bonds

- securities lending transactions

- derivatives on custom baskets and

- warrants

If the underlying position is a U.S. equity. The exchange upon which the instrument is traded and the identity of the counterparty do not affect the application of the rules. That is, a derivative can be subject to the rules, whether it is exchange listed or over the counter or trades in the United States or overseas.

Second, the derivative instrument must substantially replicate the economics of the underlying U.S. equity at the time of issuance. The rules look to delta (for simple contracts) and a substantially equivalency test (for complex contracts) to make this determination.

Delta is a correlation measurement that computes the ratio of the change in the fair market value of the derivative instrument to a change in the fair market value of the U.S. equity referenced by the derivative. In general, for purposes of this regulation, delta is only determined once over the life of the derivative instrument – at the time it is ‘issued’. It is not recomputed as the fair market value of the underlying security changes or when the derivative instrument is re-sold in the secondary market.

For most contracts, the rules are as follows:

· Pre-2017 – a derivative instrument issued prior to January 1, 2017 (i.e., anything held by a customer with us on December 31, 2016) is not subject to the new withholding tax rules.

· 2017 - a derivative instrument issued in 2017 is potentially subject to the new withholding tax regime if the delta at the time of issuance is 1.0.

· After 2017 – a derivative instrument issued after December 31, 2017 is potentially subject to the new withholding tax rules if the delta at the time of issuance is 0.8 or greater.

If the derivative is classified as “complex,” the delta test does not apply and instead the substantial equivalency test applies.

So When Is a Derivative Instrument Issued?

Identified when a derivative instrument is issued is very important. It determines if the instrument is subject to the rules (pre-2017 issued instruments are not) and when the delta computation is made. In general, an instrument is ‘issued’ when it comes into existence, its inception date or date of original issuance. Instruments are not issued when re-sold in the secondary market.

As a result, there are differences in the issuance rules for listed options, futures, other exchange traded products and over-the-counter products. For example, a listed option traded on a US exchange, generally, is not issued when first listed by an exchange as available for trading. Instead, the listed option is issued (delta determined) when the option is entered into by the customer. On the other hand, for transferable derivatives, such as exchange traded notes, convertible bonds and warrants, they would be issued only when first sold. The delta determined at that time would carryover when sold to a subsequent purchaser.

Are There Any Exceptions?

The rules do provide limited exceptions to withholding. These include:

• a derivative instrument that references a “qualified index” - generally, a passive broad publicly available index on U.S. equities such as the S&P 500, NASDAQ 100 or Russell 2000.

• a derivative instrument that references an index with little or no U.S. equity composition – such as the Hang Seng Index.

• if the dividend equivalent payment (or portion thereof) would not be subject to U.S. withholding tax if the non-US person owned the underlying security directly. This most often will occur for derivative instruments on U.S. mutual funds, REITs and exchange traded funds that pay ‘dividends’ which are re-characterized as capital gain distributions or returns of capital.

Can you provide some examples of when the rules will or will not apply?

• Customer purchases single stock futures on IBM on January 2, 2017. The delta of the future is 1.0. The future is subject to the rule.

• Customer purchases a deep in the money OCC listed option on IBM on December 28, 2016. The delta of the future is 1.0. The option is not subject to the rule as it was issued prior to 2017.

• Customer purchases index future on a narrow based index on January 15, 2017. Assume the index is not a ‘qualified index.’ The future is subject to the rule.

• Customer purchases an exchange trade note that tracks U.S. equities on January 2, 2017 with a delta of 1.0. The note was issued on July 1, 2016. The option is not subject to the rule as it was issued prior to 2017

How is the dividend equivalent withholding computed?

If the derivative instrument is subject to the new Section 871(m), a dividend equivalent payment with respect to such instrument equals the per share dividend on the underlying U.S. equity, multiplied by the number of underlying shares referenced by the instrument, multiplied by the delta (e.g., an option contract delivering 100 shares of a stock paying $1.00 dividend and having a delta of .80 would be subject to a tax based upon $80.00 dividend equivalent payment).

In the case of a complex derivative contract, the dividend equivalent will be equal to the per share dividend on the underlying, multiplied by the contract’s hedge equivalent to the underlying as calculated when the contract was issued.

How are contracts combined for purposes of determining delta?

Starting in 2018, customers who purchase derivative instrument such as a long call having a delta below the .80 threshold and selling a put on the same underlying and same share quantity within 2 days of one another will have those positions combined for the purpose of determining whether the threshold has been exceeded (e.g., the purchase of a long call with a delta of 0.60 coupled with the sale of a put with a delta of .40 would result in a long delta of 1.0).

In 2017, only over-the-counter instruments are potentially subject to combination to create a delta 1.0 instrument.

What information do we provide to inform clients about impacted positions?

To minimize exposure to the withholding tax, we intend to provide a TWS warning message will be provided when non-U.S. persons create an order that could generate the tax. This will give customers the option of canceling the order to avoid potential withholding or submitting the order and possibly paying the tax when a dividend occurs. Customers may avoid the potential withholding tax by not owning the derivative on the applicable withholding date (i.e., generally the dividend Record Date).

IMPORTANT NOTE: We do not provide tax, legal or financial advice. Each customer must speak with the customer’s own advisors to determine the impact that the Section 871(m) rules may have on the customer’s trading activity.

[1] While the holder of the call option does not receive a dividend, the premium paid by the holder for the option implicitly takes expected dividends into account (i.e., because the stock price is expected to drop by the amount of the dividend on the ex-dividend date, cash dividends imply lower call premiums).

The Common Reporting Standard (CRS), referred to as the Standard for Automatic Exchange of Financial Account Information (AEOI), calls on countries to obtain information from their financial institutions and exchange that information with other countries automatically on an annual basis. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions. For more information about CRS, please visit the OECD website.

Interactive Brokers entities comply with the requirements of CRS as implemented in the jurisdictions where they are located, and report account information to the applicable government authorities. Clients reported by Interactive Brokers under CRS will receive a CRS Client Report in the Client Portal shortly after the reporting deadlines specified below. The CRS Client Report provides an overview of the information that was reported by Interactive Brokers.

What information is reported under CRS:
- Account number
- Name
- Address
- Tax ID Number
- Tax residency country
- Date of birth
- Year-end account balance
- Gross proceeds (all sales)
- Interest income
- Dividend income
- Other income
When and where is the information reported:
- Interactive Brokers Australia Pty. Ltd. reports to the Australian Taxation Office (ATO) by July 31.
- Interactive Brokers Canada Inc. reports to the Canada Revenue Agency (CRA) by May 1.
- Interactive Brokers Central Europe Zrt. reports to the National Tax and Customs Administration of Hungary (NAV) by June 30.
- Interactive Brokers Hong Kong Limited reports to the Inland Revenue Department of Hong Kong SAR (IRD) by May 31.
- Interactive Brokers India Pvt. Ltd. reports to the Reserve Bank of India/Central Board of Direct Taxes (RBI/CBDT) by May 31.
- Interactive Brokers Ireland Limited reports to the Office of the Revenue Commissioners of Ireland by June 30.
- Interactive Brokers Securities Japan Inc. reports to the National Tax Agency of Japan (NTA) by April 30.
- Interactive Brokers Singapore Pte. Ltd. reports to the Inland Revenue Authority of Singapore (IRAS) by May 31.
- Interactive Brokers U.K. Limited reports to Her Majesty's Revenue and Customs of the United Kingdom (HMRC) by May 31.
Additional Notes:
- Information relating to clients of Introducing Brokers is not reported by Interactive Brokers. Introducing Brokers are responsible for their own reporting under CRS.
- Accounts held by Interactive Brokers LLC are not reported under CRS as the United States has not signed the CRS.

Русский

Overview:

This guide contains instructions for a Trust to complete the online tax information and to electronically submit a W-9 or W-8BEN.

Your U.S. income tax classification determines the tax form(s) required to document the account.

You must login to Account Management with the trust's primary username to access the Tax Form Collection page.

The Tax Form Collection page lets account holders review and update important tax-related information and lets account holders electronically fill out an IRS Form W-9 (U.S. taxpayers) and IRS Form W-8 (non-U.S. taxpayers).

Accessing the Tax Form Collection Page

a. Click Manage Account > Account Information > Tax Information > Tax Forms.

b. Click the Update Tax Forms button to access the Collection page.

The Tax Form Collection page opens, displaying a form with tax-related information that should already be completed. (Advisors and brokers can check the status of client updates to this page on the Dashboard Pending Items tab.

c. Review the Trust’s information and update as required.

Confirm the primary tax residency of the trust beside the Tax Residency question, "In what country is the trust a resident for tax purposes?" Select the appropriate country in the drop down menu.

Select in the Tax Residency drop down menu the applicable country.

d. Click Continue.

Confirming the Trust’s classification for U.S. purposes

a. Review the Trust’s status by confirming the question, “How are you classified for US tax purposes?” The answer is pre-filled based upon your information completed during the account application process.

b. Click the Continue button to confirm the trust classification and complete the Form W-8 or W-9 for the entity.

c. Click the Continue button to identify each Grantor.

a. Click Manage Account > Account Information > Tax Information > Tax Forms.

b. Click the Create button beside each grantor to send each user the applicable tax questionnaire and to submit the tax certification form (W-8 or W-9).

Also, update the "Percentage of Ownership" to add up to 100%, if necessary.

c. Enter the required fields for the username and password for specified grantor and click the Continue button to complete the email delivery of the link.

We will then send the owner a link to complete the necessary tax form. This link will only be used for the collection of tax forms. You must provide the username and password to the Grantor as link will not contain them.

Each Grantor must login with the username/password created and complete the pending tasks by going to Manage Account > Account Information > Tax Information > Tax Forms > Update Tax Forms.

d. Click the Continue button upon creating and sending usernames to each Grantor.

Disclaimer

This guide does not constitute tax or legal advice and Interactive Brokers cannot advise you on how to complete an IRS Forms W-8 or W-9. Instructions are for information purposes only and do not address all possible scenarios. Please consult your tax professional if you are unsure how to complete.

Introduction
Interactive Brokers (“IB”, “we” or “us”) is required to collect certain documentation from clients (“you”) to comply with U.S. Foreign Account Tax Compliance Act (“FATCA”) and other international exchange of information agreements.

This guide contains a series of flowcharts and accompanying notes that summarize IRS rules relating to:

1. The tax classification for purposes of determining which W-8 or W-9 tax form an entity is required to complete; and

2. The FATCA classification required of entities completing the W-8 tax form (Part I, Section 5).

Note: The flowcharts and notes contained herein do not cover every possible scenario and other scenarios not presented here exist and may more closely align with your situation. You should consult a tax professional regarding your particular circumstances if you are still unsure of your U.S. entity and/or FATCA classification after reading this guide.

What is NOT Covered in this Guide
The guide is directed to non-U.S. entities that (i) are the beneficial owners of the payments made to the account and (ii) are not financial institutions. This guide does not apply to:

• Individuals (use W-9 or W-8BEN)
• U.S. entities (use W-9)
• Entities acting as an intermediary (such as a nominee, broker, custodian, investment advisor) on behalf of another person (use W-8IMY).
• Non-U.S. Tax-Exempt Organizations and Private Foundations
• Financial Institutions

Note: The U.S. entered into bilateral agreements called Intergovernmental Agreements (IGAs) with many countries regarding the implementation of FATCA. In some cases, the provisions of an applicable IGA could modify the results described in this guide. Entities are covered by an IGA should refer to the IGA and/or consult a tax professional for their filing requirements.

1. U.S. Tax Classification
Your U.S. income tax classification determines the tax form(s) required to document the account. The flow chart below may help you determine your tax classification and the tax form to be completed.

Important: The U.S. imposes income tax on its residents’ worldwide income. On the other hand, nonresidents are only subject to withholding tax on certain limited types of US source investment income (dividends from U.S. companies, etc.). Completion of a W-8 series tax form certifies you are NOT taxable as a U.S. resident. A W-8 form may also be used to claim a reduced rate of withholding tax under a U.S. income tax treaty.

Flowchart for Determining Tax Classification and Required Tax Form (Non-Trust Entities)

Flowchart for Determining Tax Classification and Required Tax Form (Trusts)

2. FATCA Classification

The W8 tax forms are also used to collect FATCA classifications. Many countries have executed “Intergovernmental Agreements (IGA)” with the U.S. requiring its local financial institutions to classify its customers for FATCA purposes. The classification rules under an IGA may not exactly match the classification rules established by the IRS. Other institutions have agreed with the IRS to become FATCA compliant and determine their customers’ FATCA classifications under the IRS rules. We are required to collect this information. The flowchart below applies the IRS default FATCA classification rules and is general in nature. The flowchart is accompanied by sample W-8BEN-E screenshots for a common account structure: a non-U.S. corporation classified for FATCA purposes as a Passive Non-Financial Foreign Entity (NFFE), which qualifies for treaty witholding rates.

Note: It is important to recognize many organizations meet the qualifications for multiple FATCA types and you must select the most appropriate classification. Your specific situation may not fall within the general guidance. We recommend you seek your own independent advice as we are not in a position to make this determination for you and the rules are complex.

Flowchart for Determining FATCA Classification

Example: A corporation is a common form of entity ownership, involving two or more owners with none having any personal liability for the debts of entity. As outlined in the Tax Classification flowchart above, an entity of this type would be required to complete the W-8BEN-E. Assuming the corporation is not classified as a Foreign Financial Entity (e.g. bank, broker, investment manager, hedge fund, mutual fund, insurance company) as discussed in footnote 5 below, then its FATCA classification would be Passive NFFE. Screenshots of the W-8BEN-E for this sample entity are provided below.

Sample Screenshots - W-8BEN-E (Passive NFFE)

Footnotes

1 The US Internal Revenue Service (IRS) established rules for determining the tax classification of entities formed outside the United States. These rules apply regardless of how the entity is classified in its country of organization or residency.

Generally corporate entities are treated as the beneficial owners of an account and should complete a W-8BEN-E and select “corporation” unless they elect otherwise (discussed below).

IRS regulations assign a default classification to each entity type. This default classification may be overridden by making a filing with the IRS and obtaining an US employer identification number. Certain entities cannot change their classification and are treated as corporations in all events (e.g., Sociedad Anonima, Public Limited Company and Aktiengesellschaft). A complete list may be found at US Treasury Regulation Section 301.7701-2(b)(8).

The IRS default classification usually depends on (i) the number of owners and (ii) whether any owner is personally liable for the debts of the entity based on the organizing statute (i.e., bank guarantees or other contractual agreements by owners are ignored). The following table summarizes the default rules:

Note: Since the entity tax classification of a disregarded entity is determined by its owner, a US disregarded entity may find the flowchart helpful if the owner is a non-US entity.

A fiscally transparent entity (such as a partnership, simple trust or grantor trust) using IRS Form W-8IMY must provide IRS tax forms for all of its beneficial owners (partners in a partnership, beneficiaries for a simple trust and settlors for a grantor trust) for the account to be documented for US tax purposes.

Certain unit investment trusts (generally where there is an ability to vary the investments) are not considered trusts for US tax purposes. These investment trusts are treated in the same manner as a traditional business entity under the rules discussed above (i.e., corporation, partnership or disregarded entity).

Finally, a trust (other than a unit investment trust treated as a business entity) is considered a non-US trust for US tax purposes if (1) a court outside the United States is able to exercise primary supervision over the administration of the trust, and (2) any non-US person has the ability to control (or veto) any “substantial decision” of the trust.

The flowchart assumes that the default entity classification rules apply and the entity is not a per se corporation.

2 A partnership or simple or grantor trust may enter into a withholding agreement with the IRS pursuant to which the partnership or simple or grantor trust agrees to withhold US taxes on the account. The flowchart assumes no withholding agreement was executed.

3 In general, US tax treaty benefits are granted to the beneficial owner of the income determined under US tax principles. For fiscally transparent entities (such as partnerships, simple or grantor trusts or disregarded entities), this means the owners of the entity, NOT THE ENTITY ITSELF, claim US tax treaty benefits. These benefits are claimed on the beneficial owners’ W8 tax forms. However in certain limited cases, an entity may be considered fiscally transparent for US tax purposes but not fiscally transparent by the country with which the US has an income tax treaty. This type of an entity is called a “hybrid entity.” In certain cases, a hybrid entity, not the owners, may claim US tax treaty benefits if the hybrid entity meets the so-called qualified resident test under the applicable tax treaty. A qualifying “hybrid entity” claims the benefits of a US tax treaty by providing a Form W-8BEN-E, in addition to the form required by the flowchart. Importantly, electing hybrid status does not eliminate the need to document all beneficial owners. We note it is unusual for a hybrid entity to claim treaty benefits. The more common scenario is the beneficial owners claim treaty benefits on their tax forms.

4 The rules for classifying trusts are difficult and complex. The flowchart applies generalized rules only. There are many nuances to be considered when classifying a trust which are not addressed in the flowchart. For example, simple trusts cannot have charitable beneficiaries.

5 What is a foreign financial institution for FATCA purpose?
The various FATCA classifications can be broken down into two major categories: foreign financial institutions (FFI) and non-financial foreign (NFFE). Very generally, a financial institution is an entity that is a:

• Depository Institution
• Custodial Institution
• Investment Entity
• Insurance Company that issues certain cash value insurance or annuity contracts.

An FFI typically is required to register with the IRS, obtain a Global Intermediary Identification Number and report on its customers / owners to the appropriate tax authorities. If the entity does not meet the definition of a Financial Institution, it is considered an NFFE and covered by this guide book.

Subject to variations under IRS regulations and intergovernmental agreements:

• a Depository Institution is an institution that accepts deposits in the ordinary course of a banking or similar business. This includes banks and credit unions.
• a Custodial Institution is an institution which holds financial assets for the account of others as a substantial portion of its business. This includes brokers, custodial banks, trust companies, clearing organizations, etc.
• an Investment Entity is any entity if either
(i) the entity generates 50%+ of its gross income from (i) trading in money market instruments, foreign currency, transferrable securities, interest rates, futures, etc.; (ii) portfolio management or (iii) otherwise investing, administering or managing funds or financial assets on behalf of other persons (generally, broker-dealers and investment managers);
or
(ii) 50%+ of the entity gross income is attributable to investing, reinvesting, or trading in financial assets AND it is managed by a Financial Institution (mutual funds, hedge funds, and collective investment vehicles are examples);
or

(iii) the entity holds itself out as an entity created to invest, reinvest, or trade invest in financial assets (mutual funds, hedge funds, and collective investment vehicles are examples).

An individual cannot be an FFI. Thus, an organization managed by a professional individual investment advisor (as opposed to an employee of an organization) would not be considered an Investment Entity under (ii) above because it is not managed by a financial institution.

Trusts, family investment companies and funds may fall within the definition of an Investment Entity when they are professionally managed by a financial institution – i.e. where a financial institution handles the day-to-day functions of the entity or has discretionary authority over the fund.

Example: Individual created a non-US Trust A and appoints X, a non-US bank or other financial institution, as the trustee. X, as trustee, is responsible for the management and administration of Trust A. Trust A is an Investment Entity and a Foreign Financial Institution because it is managed by a Foreign Financial Institution.

Example: Individual created a non-US Trust A and appoints Y, an individual professional manager, as the trustee. Y, as trustee, is responsible for the management and administration of Trust A. Trust A is not an Investment Entity or a Foreign Financial Institution because it is not managed by a Foreign Financial Institution. Individuals cannot be financial institutions.

6 The IRS has a list of countries with which it has executed intergovernmental agreements (IGAs) to authorize the implementation of FATCA in that jurisdiction. The list of IGAs can be found at https://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA....

7 See #4 for the definition of Financial Institution. An organization that is not considered a financial institution is considered a non-financial foreign entity (NFFE). There are 3 types of NFFEs; Excepted, Active and Passive. An Active NFFE is an operating business where less than 50% of (i) its gross income is considered passive income and (ii) its average assets are held for the production of passive income. Any NFFE that is not Excepted or Active is a Passive NFFE and must provide us with a certification of its substantial US owners (if any) – generally 10%+ direct or indirect ownership. Some IGAs modify the means of substantial US owners and refer to them as Controlling Persons.

8 Other possible choices include nonfinancial group entity, excepted nonfinancial start-up company, excepted non-financial entity in liquidation or bankruptcy, publicly traded NFFE or sponsored NFFE. See the instructions to the W-8 for further information.

Disclaimer

This guide does not constitute tax or legal advice and Interactive Brokers cannot advise you on how to complete IRS Forms W-8. Examples included in this guide are for illustration only and do not address all possible scenarios. Please consult your tax professional if you are unsure how to complete IRS Forms W-8.

Tax Reporting

Number of Owners

Owners have Limited Liability?

Corporation

Disregarded Entity

Corporation

Partnership