Withholding on Publicly Traded Partnerships under IRC Sec. 1446(f)

As a result of recent U.S. legislation under Internal Revenue Code Section 1446(f), gross proceeds from sales of and certain distributions from Publicly Traded Partnerships ("PTPs") will be subject to 10% withholding starting on January 1, 2023. Please note the following:

  • Withholding applies to PTPs held by non-U.S. tax residents (both individuals and entities).
  • Exemption from withholding may apply if PTPs meet certain requirements.
  • Options and other derivative transactions 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 interest will be subject to withholding.
  • Withholding will be reported on the year-end Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding.

Additional information about IRC Sec. 1446(f) is available on the IRS website: http://www.irs.gov/individuals/international-taxpayers/partnership-withholding

This list identifies the PTP securities that will be subject to withholding under IRC Sec. 1446(f) unless a withholding exemption is applicable. Note that this list will be updated on a best efforts basis and is subject to change without notice.

ISIN Symbol Name
GB00B15Y0C52 AAAA AP ALTERNATIVE ASSETS LP
US01881G1067 AB ALLIANCEBERNSTEIN HOLDING LP
US01855A1016 AC ALLIANCE CAP MGMT LP
TC0001464281 ACE PRB CAPITAL RE LLC: 7.65% CUM "MIPS"
US00434L1098 - ACCESS MIDSTREAM PARTNERS LP
US0291691097 ACP AMERICAN REAL ESTATE PTNR-LP
US0291692087 ACP PR AMERICAN REAL ESTATE PRTNRS: ACP PR
US02364Y1010 AFREZ AMERICA FIRST REAL ESTATE INVESTMENT PARTNERS
US74347W3530 AGQ PROSHARES ULTRA SILVER 
US74347W8414 - PROSHARES ULTRA SILVER
US04939R1086 - ATLAS ENERGY LP
US01861G1004 AHGP ALLIANCE HOLDINGS GP LP
US0268621028 AIA AMERICAN INSD MTG INVS
US02686F1030 AIJ AMERN INSD MTG INVS L P 86
US02686G1013 AIK AMERN INSD MTG INVS L P 88
US0093661058 AIRL AIRLEASE LTD
US02052T1097 ALDW ALON USA PARTNERS LP
US4642941078 ALT ISHARE DIVERSIFIED ALT TRUST
US03673L1035 - ANTERO MIDSTREAM PARTNERS LP
US02752P1003 - AMERICAN MIDSTREAM PARTNERS
US03350F1066 ANDX ANDEAVOR LOGISTICS LP
US0493921037 APL ATLAS PIPELINE PARTNERS LP
US0493923017 APL PRECL ATLAS PIPELINE PARTNERS, L.P. CUMV
US03957U1007 APLP ARCHROCK PARTNERS LP 
US02520N1063 APO AMERICAN COMMUNITY PROPERTIE
US0376124055 APO PRA.O APOLLO MANAGEMENT LLC
US0376125045 APO PRB.O APOLLO MANAGEMENT LLC 
US0376123065 - APOLLO GLOBAL MANAGEMENT - A
US0309751065 APU AMERIGAS PARTNERS-LP
US03879N1019 ARCX ARC LOGISTICS PARTNERS LP
US04014Y2000 ARES PRA. ARES MGMT LP PFD UNIT SER A
US04014Y1010 - ARES MANAGEMENT LP
US01877R1086 ARLP ALLIANCE RESOURCE PARTNERS
US04941A5074 ARNPQ ATLAS RESOURCE PARTNERS 
US04941A1016 ARPJQ ATLAS RESOURCE PARTNERS LP
US04941A4085 ARPPQ ATLAS RESOURCE PARTNERS
US02364V2060 ATAX AMERICA FIRST MULTIFAMILY IN 
US02364V1070 - AMERICA FIRST MULTIFAMILY IN
US04930A1043 ATLS ATLAS ENERGY LP 
US04929Q1022 - ATLAS ENERGY GROUP LLC
US0493031001 ATN ATLAS ENERGY RESOURCES LLC
US0548071028 AZLCZ AZTEC LAND & CATTLE LTD
US05501X1000 AZURQ AZURE MIDSTREAM PARTNERS LP
US25490F1003 BAR DIREXION DAILY GOLD BULL 3X
US25490F2092 BARS DIREXION DAILY GOLD BEAR 3X
US1067761072 BBEPQ BREITBURN ENERGY PARTNERS LP
US1067761155 BBPPQ BREITBURN ENG PARTNERS LP CUM REDEE
BMG162341090 BBU BROOKFIELD BUSINESS PT-UNIT 
US26923H2004 BDRY BREAKWAVE DRY BULK SHIPPING
BMG162581083 BEP BROOKFIELD RENEWABLE PARTNER
BMG162582313 BEP PRA BROOKFIELD RENEWABLE PAR    
BMG162581083 BEP.UN BROOKFIELD RENEWABLE PARTNER 
US1181671058 BGH BUCKEYE GP HOLDINGS LP
US092ESC0377 BGIO.ESC ESC BGIO LIQUIDATION TRUST
US0925ESC094 BHL.ESC BLACKROCK DEFINED OPPORTUNIT - ESCROW
BMG162521014 BIP BROOKFIELD INFRASTRUCTURE PA
USG162522670 BIP PRA BROOKFIELD INFRASTRUCTURE PARTNERS LP
BMG162522756 BIP PRB BROOKFIELD INFRASTRUCTUR      
US0917491013 BITW BITWISE 10 CRYPTO INDEX FUND
US09625U1097 BKEP BLUEKNIGHT ENERGY PARTNERS L
US81662W1080 - SEMGROUP ENERGY PARTNERS LP
US09625U2087 BKEPP BLUEKNIGHT ENERGY PARTNERS - SERIES A PREF UNIT
US91167Q1004 BNO UNITED STATES BRENT OIL FUND
US86324B1035 BNPC STREAM S&P DYN GLOBAL COMM
US74347Y8701 BOIL PROSHARES ULTRA BLOOMBERG NA 
US74347W7754 - PROSHARES ULT DJ-UBS NAT GAS
US74347W1229 - PROSHARES ULTRA BLOOMBERG NA
US74347Y7067 - PROSHARES ULTRA BLOOMBERG NA
US74347W2961 - PROSHARES ULTRA BLOOMBERG NA 
US1182301010 BPL BUCKEYE PARTNERS LP
US0556EL1098 BPMP BP MIDSTREAM PARTNERS LP
BMG162491077 BPY BROOKFIELD PROPERTY PARTNERS
BMG1624R1079 BPYP.PR.A NEW LP PREFERRED UNITS CAD
BMG1624R1079 BPYPM NEW LP PREFERRED UNITS CAD
BMG162491648 BPYPN BROOKFIELD PROPERTY PART  
BMG162491564 BPYPO BROOKFIELD PROPERTY PART 
BMG162491499 BPYPP BROOKFIELD PROPERTY PART
US09225M1018 BSM BLACK STONE MINERALS LP
US0966271043 BWP BOARDWALK PIPELINE PARTNERS
US09253U1088 - BLACKSTONE GROUP LP/THE
US20588V3078 CAG PRB CONAGRA CAP L C: CAG PRB
US88166A4094 CANE TEUCRIUM SUGAR FUND
US22758A1051 CAPL CROSSAMERICA PARTNERS LP
GG00B1WR8K11 CCAP CONVERSUS CAPITAL
US12637A1034 CCLP CSI COMPRESSCO LP
US20855T1007 CCR CONSOL COAL RESOURCES LP
US2327511075 - CYPRESS ENVIRONMENTAL PARTNE
US21038E1010 - CONSTELLATION ENERGY PARTNER
US2263442087 CEQP CRESTWOOD EQUITY PARTNERS LP 
US2263443077 CEQP PR CRESTWOOD EQUITY PARTNER
US2263441097 - CRESTWOOD EQUITY PARTNERS LP
US67074P1049 CFD NUVEEN DIVERSIFIED COMMODITY
US14309L1026 - CARLYLE GROUP INC/THE
US1609081096 CHC CHARTERMAC
US16524K1088 - CHESAPEAKE MIDSTREAM PARTNER
US1651851099 CHKR CHESAPEAKE GRANITE WASH TRUS
US12547R1059 CIFC CIFC LLC
US1314761032 CLMT CALUMET SPECIALTY PRODUCTS
US15188T1088 - CENTERLINE HOLDING CO
US74347W6764 CMD PROSHARES ULTRASHORT BLOOMBE  
US74347W2052 - PROSHRE U/S DJ-AIG COMMODITY
US45032K1025 CMDT ISHARES COMMODITY OPTIMIZED
US2263781070 CMLP CRESTWOOD MIDSTREAM PARTNERS 
US2263721001 - CRESTWOOD MIDSTREAM PARTNERS
US2068121092 - CONE MIDSTREAM PARTNERS LP
US2189161043 CNPP CORNERSTONE PROPANE PARTNERS
US12592V1008 - CNX COAL RESOURCES LP
US12654A1016 CNXM CNX MIDSTREAM PARTNERS LP
US88166A1025 CORN TEUCRIUM CORN FUND
US9117181043 CPER UNITED STATES COPPER INDEX
US2172021006 CPNO COPANO ENERGY LLC-UNITS
US1982811077 CPPL COLUMBIA PIPELINE PARTNERS L
US16411Q1013 CQP CHENIERE ENERGY PARTNERS LP
US74347W4603 CROC PROSHARES ULTRASHORT AUD
US2284391057 CRPPE CROWN PAC PARTNERS L P
US88166A3005 CRUD TEUCRIUM CRUDE OIL FUND
US1272072075 CSD PRA CADBURY SCHWEPPES DEL L P
US6707311089 CTF NUVEEN LONG/SHORT COMMODITY
US12663P1075 CVRR CVR REFINING LP
US2128491030 CWPS CONWEST PARTNERSHIP LP-UNITS
US46140H1068 DBA INVESCO DB AGRICULTURE FUND 
US73936B4086 - POWERSHARES DB AGRICULTURE F
US46140H7008 DBB INVESCO DB BASE METALS FUND
US73936B7055 - POWERSHARES DB BASE METALS F
US46138B1035 DBC INVESCO DB COMMODITY INDEX T
US73935S1050 - POWERSHARES DB COMMODITY IND
US46140H3049 DBE INVESCO DB ENERGY FUND
US73936B1017 - POWERSHARES DB ENERGY FUND
US46140H4039 DBO INVESCO DB OIL FUND
US73936B5075 - POWERSHARES DB OIL FUND
US46140H5028 DBP INVESCO DB PRECIOUS METALS F
US73936B2007 - POWERSHARES DB PREC METALS F
US46140H2058 DBS INVESCO DB SILVER FUND
US73936B3096 - POWERSHARES DB SILVER FUND
US46139B1026 DBV INVESCO DB G10 CURRENCY HARV
US73935Y1029 - POWERSHARES DB G10 CURR HARV
US23311P1003 DCP DCP MIDSTREAM L.P.
US23311P2092 DCP PRB DCP MIDSTREAM LP
US23311P3082 DCP PRC DCP 7.95 PERP PFD - DCP MIDSTREAM LP
US55610N1054 DCR MACROSHARES OIL DOWN TRADEABLE
US18383H1014 - CLAYMORE MACROSHARES OIL DOW
US88166A8053 DEFI HASHDEX BITCOIN FUTURES ETF
US2650261041 DEP DUNCAN ENERGY PARTNERS LP
US46140H6018 DGL INVESCO DB GOLD FUND
US73936B6065 - POWERSHARES DB GOLD FUND
US24664T1034 DKL DELEK LOGISTICS PARTNERS LP
US2574541080 - DOMINION ENERGY MIDSTREAM PA
US25820R1059 DMLP DORCHESTER MINERALS LP
US55610X1037 DMM MACROSHARES MAJ MET HOU DOWN
US9126132052 DNO UNITED STATES SHORT OIL FUND
US55610T2015 DOY MACROSHARES USD 100 OIL DOWN
US55610T1025 - MACROSHARES $100 OIL DOWN
US2662242039 DQ PRA DUQUESNE CAP L P
US29357D2080 ECSPQ ENRON CAPITAL RESOURCES 9% CUM RED PFD
US26827L1098 ECTM ECA MARCELLUS TRUST I
TC0001373946 ECTPQ ENRON CAP LLC
US29250R1068 EEP ENBRIDGE ENERGY PARTNERS LP
US28252B8046 EFSH 1847 HOLDINGS LLC 
US28252B3096 - 1847 HOLDINGS LLC
US29102H1086 EMESQ EMERGE ENERGY SERVICES LP
US2924801002 ENBL ENABLE MIDSTREAM PARTNERS LP
US1534231089 ENGY CENTRAL ENERGY PARTNERS LP
US29336U1079 ENLK ENLINK MIDSTREAM PARTNERS LP
US29257A1060 ENP ENCORE ENERGY PARTNERS-LP
US2837021086 EPB EL PASO PIPELINE PARTNERS LP
US2937921078 EPD ENTERPRISE PRODUCTS PARTNERS
US2937161063 EPE ENTERPRISE GP HOLDINGS LP
US26885J1034 EQGP EQGP HOLDINGS LP
US26885B1008 EQM EQM MIDSTREAM PARTNERS LP
US26985R1041 EROC EAGLE ROCK ENERGY PARTNERS
US2921021000 ESBA EMPIRE STATE REALTY OP LP-ES
US29273V1008 ET ENERGY TRANSFER LP
US29273V4077 ET PRC ENERGY TRANSFER LP 
US29273V5066 ET PRD ENERGY TRANSFER LP 7.625% PERP PFD
US29273V6056 ET PRE ENERGY TRANSFER LP 7.6% PERP PFD U
US29278N1037 ETP ENERGY TRANSFER OPERATING LP
US29278N3017 ETP PRC ENERGY TRANSFER PARTNERS
US29278N4007 ETP PRD ENERGY TRANSFER PARTNERS 
US29278N5095 ETP PRE ENERGY TRANSFER OPERATNG
US29273R1095 - ENERGY TRANSFER PARTNERS LP
US74347W7424 - PROSHARES SHORT EURO ETF
US74347W8828 EUO PROSHARES ULTRASHORT EURO
US29414J1079 - ENVIVA PARTNERS LP
US26926V1070 EVEPQ EV ENERGY PARTNERS LP
US30225N1054 EXLP ARCHROCK PARTNERS LP
US34552U1043 FELPQ FORESIGHT ENERGY LP
US3152932097 FGPR FERRELLGAS PARTNERS-LP 
US3152933087 FGPRB FERRELLGAS PARTNERS LP-B
US3152931008 FGPRQ FERRELLGAS PARTNERS-LP
US34958B1061 - FORTRESS INVESTMENT GRP-CL A
US57118V1008 - MARLIN MIDSTREAM PARTNERS LP
US2921023089 FISK EMPIRE STATE REALTY OP -S250
US30304P1049 FOL FACTORSHARES 2X: OIL-S&P500
US3030471045 FSA FACTORSHARES 2X: TBD-S&P500
US3030461061 FSE FACTORSHARES 2X: S&P500-TBD
US30304T1060 FSG FACTORSHARES 2X: GOLD-S&P500
US3030481028 FSU FACTORSHARES 2X: S&P500-USD
US34960P1012 FTAI FORTRESS TRANSPORTATION-CL A
US34960P4081 FTAIN FORTRESS TRANS & INFRAST  
US34960P3091 FTAIO FORTRESS TRANS & INFRAST 
US34960P2002 FTAIP FORTRESS TRANS & INFRAST
US1501851067 FUN CEDAR FAIR -LP
US976ESC3018 FUR.ESC WINTHROP REALTY TRUST - ESCROW
US74347W5360 FUTS PROSHARES MANAGED FUTURES ST
US37959R1032 GBLI GLOBAL INDEMNITY GROUP LLC-A
US3952581060 - GREENHAVEN CONTINUOUS CMDTY
US97718W1080 GCC.USD WISDOMTREE CONTINUOUS COMMOD
US74347W4942 GDAY PROSHARES ULT AUSTRALIAN DOL
US38349K1051 GDVTZ GOULD INVESTORS LP
US3719271047 GEL GENESIS ENERGY L.P.
US69341H1059 GFWQZ PLM EQUIPMENT GROWTH FD III
US74347W3951 GLL PROSHARES ULTRASHORT GOLD
US74347W7002 - PROSHARES ULTRASHORT GOLD
US74347W7184 - PROSHARES ULTRASHORT GOLD 
US37946R1095 GLP GLOBAL PARTNERS LP
US37946R2085 GLP PRA GLOBAL PARTNERS LP 
US37946R3075 GLP PRB GLOBAL PARTNERS LP  
US3932211069 GPP GREEN PLAINS PARTNERS LP
US3860872098 GRM PRA GRAND MET DEL L P
CA3874371147 GRP U GRANITE REAL ESTATE INVESTME 
CA3874371147 GRT.UN GRANITE REAL ESTATE INVESTME
US46428R1077 GSG ISHARES S&P GSCI COMMODITY I 
US20467A1016 GSJK COMPRESSCO PARTNERS LP
US40274U1088 GTM GULFTERRA ENERGY PARTNERS LP
US36761Q1058 GWYGU GATEWAY GARAGE PARTNERS LLC
US4038291047 GYRO GYRODYNE LLC
US4283371098 HCRSQ HI-CRUSH INC
US4357631070 HEP HOLLY ENERGY PARTNERS LP
US4281041032 - HESS MIDSTREAM PARTNERS LP
US4312911039 HLND HILAND PARTNERS LP
CA0266951064 HOT.UN AMERICAN HOTEL INCOME PROPER
US4269181081 HPG HERITAGE PROPANE PRTNRS LP
US43129M1071 HPGP HILAND HOLDINGS GP LP
BMG4285W1001 HRBGF HARBOR GLOBAL COMPANY LTD
US40636T2033 HRY HALLWOOD RLTY PARTNERS L P
US4223571039 HTLLQ HEARTLAND PARTNERS LP-A
US0293162055 - AMERICAN RESTAURANT PRTNR LP 
US59140L1008 IDIV METAURUS US EQUITY CUMULATIV
US4511001012 IEP ICAHN ENTERPRISES LP
US4511002002 IEP PRCL ICAHN ENTERPRISES LP 
US4511001194 IEPRR ICAHN ENTERPRISES LP-RIGHT
US4608852053 IGLPA INTERSTATE GEN L P
US46643C1099 JPEP JP ENERGY PARTNERS LP
US48248A3068 KFN KKR FINANCIAL HOLDINGS LLC
US48248A6038 KFN PRCL KKR FINANCIAL HOLDINGS 
US74839G1067 - QUICKSILVER GAS SERVICES LP
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
US4945501066 KMP KINDER MORGAN ENERGY PRTNRS
US74347Y8131 KOLD PROSHARES ULTRASHORT BLOOMBE   
US74347Y8214 - PROSHARES ULTRASHORT BLOOMBE
US74347W3878 - PROSHARES ULTRASHORT BLOOMBE 
US74347W7671 - PROSHARES ULTSHRT DJ-UBS NAT
GB00B13BNQ35 KPEQF KKR & CO 
US4841691078 KPP KANEB PIPE LINE PARTNERS L P
US4841731098 KSL KANEB SERVICES LLC
US48268Y1010 KSP K-SEA TRANSPORTATION PARTNER
US22676R1150 KWH.UN CRIUS ENERGY TRUST
US5053461068 LAACZ LAACO LTD-UNITS OF LTD PRTNS
BMG540501027 LAZ LAZARD LTD-CL A
US5248141005 - LEHIGH GAS PARTNERS LP
US5327711025 - LIN MEDIA LLC - A
US5360201009 LINEQ LINN ENERGY LLC-UNITS
SGXC28500103 LIW EAGLE HOSPITALITY TRUST
US51508J1088 LMRK LANDMARK INFRASTRUCTURE PART
US51508J4058 LMRKN LANDMARK INFRASTRUCTURE PARTNERS LP
US51508J3068 LMRKO LANDMARK INFRASTRUCTURE 
US51508J2078 LMRKP LANDMARK INFRASTRUCTURE
US5357631069 LNKE LINK ENERGY LLC
US50214A1043 LRE LRR ENERGY LP
US59560V2088 MCEP MID-CON ENERGY PARTNERS LP 
US59560V1098 - MID-CON ENERGY PARTNERS LP
US6050342061 ME PRA MISSION CAP L P
US6050343051 ME PRB MISSION CAP L P: ME PRB
US5860481002 MEMPQ MEMORIAL PRODUCTION PARTNERS
US59564N1037 MEP MIDCOAST ENERGY PARTNERS LP
US55907R1086 MGG MAGELLAN MIDSTREAM HOLDINGS
US55608B1052 MIC.USD MACQUARIE INFRASTRUCTURE HOL
US62624B1017 - MUNICIPAL MORTGAGE & EQUITY
US5733311055 MMLP MARTIN MIDSTREAM PARTNERS LP
US5590801065 MMP MAGELLAN MIDSTREAM PARTNERS
US55336V1008 MPLX MPLX LP
US55271M2061 MUK PRA MEPC INTL CAP L P
US5707591005 MWE MARKWEST ENERGY PARTNERS LP
US55406N1037 MYTH MYT HLDG LLC BE+
US88166A2015 NAGS TEUCRIUM NATURAL GAS FUND
US65506L1052 NBLX NOBLE MIDSTREAM PARTNERS LP
US6442061049 NEN NEW ENGLAND REALTY ASSOC-LP
US62913M1071 NGL NGL ENERGY PARTNERS LP
US62913M2061 NGL PRB NGL 9 PERP PFD
US62913M3051 NGL PRC NGL ENERGY PARTNERS LP 
US87611X1054 NGLS TARGA RESOURCES PARTNERS LP
US87611X2045 NGLS PRA TARGA RESOURCES PARTNERS
US6514261089 NHL NEWHALL LAND & FARMING CO
US6546781013 NKA NISKA GAS STORAGE PARTNERS-U
US6294221063 NLP NTS REALTY HOLDINGS LP
US55307U1079 - ML MACADAMIA ORCHARDS LP-UT
US41988L2025 NNUTU HAWAIIAN MACADAMIA NUT ORCHA 
US78028T1007 - ROYAL HAWAIIAN ORCHARDS LP
US45671U1060 - INERGY MIDSTREAM LP
US45661Q1076 NRGP INERGY HOLDINGS LP
US4566151035 - INERGY LP
US63900P6088 NRP NATURAL RESOURCE PARTNERS LP 
US63900P1030 - NATURAL RESOURCE PARTNERS LP
US67058H1023 NS NUSTAR ENERGY LP
US67058H2013 NS PRA NSUS 8 1/2 12/31/49
US67058H3003 NS PRB NSUS 7 5/8 PERP PFD
US67058H4092 NS PRC NUSTAR ENERGY LP 
US67059L1026 - NUSTAR GP HOLDINGS LLC
US64881E1091 NSLPQ NEW SOURCE ENERGY PARTNERS L
US63900P5098 NSP NATURAL RESOURCE PARTNERS LP 
US63900P4000 NSP NATURAL RESOURCE PARTNERS LP -PARTNERSHIP UNITS
US6658261036 NTI NORTHERN TIER ENERGY LP
US64881E3071 NUSPQ NEW SOURCE ENG PARTNERS LP 11%SR A
US64ESC19977 NYRT.ESC NEW YORK REIT INC - ESCROW
US6740012017 OAK OAKTREE CAPITAL GROUP LLC
US6740013007 OAK PRA OAKTREE CAPITAL GRP LLC
US6740014096 OAK PRB OAKTREE CAPITAL GRP LLC 
US67091N1081 OCIP OCI PARTNERS LP
US67081B1061 - OCI RESOURCES LP
SGXC39411175 ODBU UNITED HAMPSHIRE US REIT
US2921022099 OGCP EMPIRE STATE REALTY OP-S60
US74347W2136 - PROSHARES ULTRAPRO 3X SHORT
US74347Y8057 - PROSHARES ULTRAPRO 3X SHORT 
US6780491071 OILT OILTANKING PARTNERS LP
US74347W2219 - PROSHARES ULTRAPRO 3X CRUDE
US6740011027 OKCMZ OAKTREE CAP GROUP-UTS CL A
US68268N1037 OKS ONEOK PARTNERS LP
US67420T2069 OMP OASIS MIDSTREAM PARTNERS LP
US6710281089 OSP OSG AMERICA LP
US6918071019 OXF OXFORD RESOURCE PARTNERS LP
SGXC75818630 OXMU PRIME US REIT
US0806941029 OZ BELPOINTE PREP LLC
US67551U1051 - OCH-ZIFF CAPITAL MANAGEMEN-A
US7265031051 PAA PLAINS ALL AMER PIPELINE LP
US69318Q1040 PBFX PBF LOGISTICS LP
US71672U1016 PDH PETROLOGISTICS LP
US80007A1025 - SANDRIDGE PERMIAN TRUST
US55406N2027 PFDM PFD MYT HLDG CO BE+
CA7069025095 - PENGROWTH ENERGY TRUST-A
US7192171012 PLP PHOSPHATE RESOURCE PRTNRS L.P.
US6931391071 PNG PAA NATURAL GAS STORAGE LP
US7328571077 POPE POPE RESOURCES
US69422R1059 PPX PACIFIC ENERGY PARTNERS LP
US72388B1061 PSE PIONEER SOUTHWEST ENERGY PAR
US7185492078 PSXP PHILLIPS 66 PARTNERS LP
US7093111042 PTXP PENNTEX MIDSTREAM PARTNERS L
US70788P1057 - PENN VIRGINIA GP HOLDINGS LP
US6936651016 PVR PVR PARTNERS LP
US7078841027 - PENN VIRGINIA RESOURCE PARTN
US74836B2097 - QUEST ENERGY PARTNERS LP
US74735R1150 QEPM QEP MIDSTREAM PARTNERS LP
US74734R1086 QRE QR ENERGY LP
US76090H1032 QSP.U RESTAURANT BRANDS EXCHANGE UNITS
CA76090H1038 QSP.UN RESTAURANT BRANDS-EXCH UNITS
US75885Y1073 RGP REGENCY ENERGY PARTNERS LP
US76218Y1038 - RHINO RESOURCE PARTNERS LP
US76218Y2028 - RHINO RESOURCE PARTNERS LP 
US26923H1014 RISE SIT RISING RATE ETF
US7628191006 RMP RICE MIDSTREAM PARTNERS LP
US7601131003 RNF RENTECH NITROGEN PARTNERS LP
US7771491054 RRMS ROSE ROCK MIDSTREAM LP
CA76090H1038 RSTRF RESTAURANT BRANDS-EXCH UNITS 
GG00BKTRRM22 RTW RTW VENTURE FUND LTD
CA74624AUSD4 RUF.U PURE MULTI-FAMILY REIT LP
CA74624A1084 RUF.UN PURE MULTI-FAMILY REIT LP
CA74624A1084 RUF.UN PURE MULTI-FAMILY REIT LP 
US7672711097 - RIO VISTA ENERGY PARTNERS LP
US74347Y7976 SCO PROSHARES ULTRASHORT BLOOMBE 
US74347W6681 - PROSHARES ULTRASHORT BLOOMBE
US74347Y8628 - PROSHARES ULTRASHORT BLOOMBE  
US74347W8091 - PROSHRE U/S DJ-AIG CRUDE OIL
US80007V1061 SDRMU SANDRIDGE MISSISSIPPIAN TRUS 
US80007T1016 SDTTU SANDRIDGE MISSISSIPPIAN TRUS
US84756N1090 SEP SPECTRA ENERGY PARTNERS LP
US85512C2044 SGH STAR GAS PTNRS,LP SR SB UTS
MHY737601036 - SEANERGY MARTIME HOLDINGS CORP
US8226341019 SHLX SHELL MIDSTREAM PARTNERS LP
US1724641097 SIRE SISECAM RESOURCES LP
US8661424098 SMLP SUMMIT MIDSTREAM PARTNERS LP 
US8661421029 - SUMMIT MIDSTREAM PARTNERS LP
US30053M1045 SNMP EVOLVE TRANSITION INFRASTRUC
US79971C2017 - SANCHEZ MIDSTREAM PARTNERS L
US88166A6073 SOYB TEUCRIUM SOYBEAN FUND
US8644821048 SPH SUBURBAN PROPANE PARTNERS LP
US21258A2015 SPKX CONVXTY SHS 1X SPIKES FUTUR
US21258A1025 SPKY CONVXTY SHS DAILY 1.5X SP FU
US85814R1077 SPLP STEEL PARTNERS HOLDINGS LP
US85814R2067 SPLP PRA STEEL PARTNERS HOLDINGS LP 
US85814R3057 SPLP PRT STEEL PARTNERS HLDS LP
US79971A1060 - SANCHEZ PRODUCTION PARTNERS
US79971C1027 - SANCHEZ PRODUCTION PARTNERS 
MHY737602026 SRG U SEANERGY MARITIME CORP-UNITS
US8493431089 SRLP SPRAGUE RESOURCES LP
US86183Q1004 - STONEMOR PARTNERS LP
US86765K1097 SUN SUNOCO LP
US8692391035 - SUSSER PETROLEUM PARTNERS LP
US92891H1014 SVIX -1X SHORT VIX FUTURES ETF
US74347W1302 SVXY PROSHARES SHORT VIX ST FUTUR   
US74347W6277 - PROSHARES SHORT VIX ST FUTUR
US86722Y1010 SXCP SUNCOKE ENERGY PARTNERS LP
US84130C1009 SXEEQ SOUTHCROSS ENERGY PARTNERS L
US86764L1089 - SUNOCO LOGISTICS PARTNERS L.P
US88166A7063 TAGS TEUCRIUM AGRICULTURAL FUND
US14309L2016 TCGP CG 5 7/8 PERP PFD
US87233Q1085 TCP TC PIPELINES LP
US8746971055 TEP TALLGRASS ENERGY PARTNERS LP
US88160T1079 - TESORO LOGISTICS LP
US89376V1008 TLP TRANSMONTAIGNE PARTNERS LP
US8810052014 TNH TERRA NITROGEN COMPANY LP
US97718T1051 TONS WISDOMTREE COAL FUND
US39525T1007 - GREENHAVEN COAL FUND
US8723841024 TPP TEPPCO PARTNERS LP
US1266332055 UAN CVR PARTNERS LP 
US1266331065 - CVR PARTNERS LP
US74347W2888 UCD PROSHARES ULTRA BLOOMBERG CO 
US74347W1062 - PROSHARES ULTRA BLOOMBERG CO
US9134301046 UCLP UNIVERSAL COMPRESSION PARTNE
US74347Y8883 UCO PROSHARES ULTRA BLOOMBERG CR 
US74347W6509 - PROSHARES ULTRA BLOOMBERG CR
US74347W2474 - PROSHARES ULTRA BLOOMBERG CR
US74347W3209 - PROSHARES ULTRA BLOOMBERG CR 
US74347W5022 - PROSHARES ULTRA DJ-UBS CRUDE OIL
US55610L1098 UCR MACROSHARES OIL UP TRADEABLE T
US18383R1095 - CLAYMORE MACROSHARES OIL UP
US46141D1046 UDN INVESCO DB US DOLLAR INDEX B 
US73936D2062 - POWERSHARES DB US DOL IND BE
US91201T1025 UGA UNITED STATES GAS FUND LP
US74347W6012 UGL PROSHARES ULTRA GOLD
US9117831084 UHN UNITED STATES DIESEL-HEATING
US91204P1075 - UNITED STATES HEATING OIL LP
US74347W8745 ULE PROSHARES ULTRA EURO
US55610R1068 UMM MACROSHARES MAJ MET HOU UP
US9123183009 UNG US NATURAL GAS FUND LP  
US9123181029 - US NATURAL GAS FUND LP
US9123182019 - US NATURAL GAS FUND LP
US9123181102 - US NATURAL GAS FUND LP 
US91288X1090 UNL UNITED STATES 12 MONTH NATUR
US55610W2044 UOY MACROSHARES USD 100 OIL UP
US55610W1053 - MACROSHARES $100 OIL UP
US90290N1090 USAC USA COMPRESSION PARTNERS LP
US9117182033 USAG UNITED STATES AGRICULTURE IN
US9117171069 USCI UNITED STATES COMMODITY INDE
US9033181036 USDP USD PARTNERS LP
US91288V1035 USL UNITED STATES 12 MONTH OIL
US9117183023 USMI UNITED STATES METALS INDEX F
US91232N2071 USO UNITED STATES OIL FUND LP  
US91232N1081 - UNITED STATES OIL FUND LP
US91733T5056 USOD UNITED STATES 3X SHORT OIL F 
US91733T4067 - UNITED STATES 3X SHORT OIL F
US91733T3077 USOU UNITED STATES 3X OIL FUND
US9034171036 USSPQ US SHIPPING PARTNERS LP
US46141D2036 UUP INVESCO DB US DOLLAR INDEX B
US73936D1072 - POWERSHARES DB US DOL IND BU
US92891H3093 UVIX 2X LONG VIX FUTURES ETF
US74347Y8396 UVXY PROSHARES ULTRA VIX ST FUTUR
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   
US91914G1085 VEH VALERO GP HOLDINGS LLC
US74347W3381 VIXM PROSHARES VIX MID-TERM FUT 
US74347W6848 - PROSHARES VIX MID-TERM FUT
US74347Y8545 VIXY PROSHARES VIX SHORT-TERM FUT
US74347W3613 - PROSHARES VIX SHORT-TERM FUT
US74347W6921 - PROSHARES VIX SHORT-TERM FUT
US74347W2623 - PROSHARES VIX SHORT-TERM FUT
US74347W3613 - PROSHARES VIX SHORT-TERM FUT 
US74347W1716 - PROSHARES VIX SHORT-TERM FUT 
US91913W1045 VLI VALERO LP
US91914J1025 VLP VALERO ENERGY PARTNERS LP
US92205F3047 VNGBQ VANGUARD NATURAL RESOURCES LLC RED
US92205F2056 VNRAQ VANGUARD NATURAL RESOU
US92205F4037 VNRCQ VANGUARD NATURAL RESOU 
US92205F1066 VNRSQ VANGUARD NATURAL RESOURCES
KYG9325C1050 VTDRF VANTAGE DRILLING INTERNATION
US88166A5083 WEAT TEUCRIUM WHEAT FUND
US26800L1008 WEIX DYNAMIC SHORT SHORT
US9586691035 WES WESTERN MIDSTREAM PARTNERS L
US9582541044 - WESTERN GAS PARTNERS LP
US95825R1032 - WESTERN GAS EQUITY PARTNERS
US9604171036 WLKP WESTLAKE CHEMICAL PARTNERS L
US96108P1030 WMLPQ WESTMORELAND RESOURCE PARTNE
US96950K1034 WMZ WILLIAMS PIPELINE PARTNERS L
US95931Q2057 WNRL WESTERN REFINING LOGISTICS L
US92930Y1073 - WP CAREY & CO LLC
US93964X1063 WPG WASHINGTON PG INC UNRESTRICTED SHARES
US98159G1076 WPT WORLD POINT TERMINALS LP
US96949L1052 WPZ WILLIAMS PARTNERS LP
US96950F1049 WPZ.USD WILLIAMS PARTNERS LP
US59140L2097 - METAURUS US EQUITY EX DIVIDE
US22765U1025 - CROSSTEX ENERGY LP
US30242M1062 XXFPL FFP PARTNERS -LP-CL A
US0293161065 XXMUT AMERN RESTAURANT PARTNERS
US0293161065 - AMERICAN RESTAURANT PRTNR LP
US74347W2706 YCL PROSHARES ULTRA YEN 
US74347W8661 - PROSHARES ULTRA YEN
US74347W5691 YCS PROSHARES ULTRASHORT YEN 
US74347W8588 - PROSHARES ULTRASHORT YEN
US74347Y8479 ZSL PROSHARES ULTRASHORT SILVER
US74347W8331 - PROSHARES ULTRASHORT SILVER
US74347W6434 - PROSHARES ULTRASHORT SILVER
US74347W7267 - PROSHARES ULTRASHORT SILVER 
US74347W1146 - PROSHARES ULTRASHORT SILVER 

 

Information on Irish Interest Withholding

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.  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

Croatia

Finland

Iceland

Slovakia

Czech Republic

France

Luxembourg

Spain

Cyprus

Germany

Malta

Sweden

 

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

 

Belgium

Greece

Lithuania

Romania

Bulgaria

Italy

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

Macedonia*

Serbia

Armenia

Ghana

Malaysia

Singapore

Australia

Greece

Mexico

South Africa*

Bahrain*

Hong Kong

Moldova

Switzerland*

Belarus

India

Montenegro

Thailand

Bosnia & Herzegovina*

Israel

Morocco

Turkey

Botswana

Japan

New Zealand

Ukraine

Canada

Kazakhstan

Norway*

United Arab Emirates*

Chile

Kenya

Pakistan

United Kingdom*

China

Korea*

Panama

United States of America*

Egypt

Kosovo

Qatar*

Uzbekistan

Ethiopia

Kuwait*

Russian Federation*

Vietnam

 

 

Saudi Arabia*

Zambia*

 

 

 

 

 

 

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

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

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 ItemsThe 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:

 

Connecticut Sales and Use Tax

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 Personal Property Tax

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.

 

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

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.

Withholding Tax on Dividend Equivalent Payments - FAQs

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).

Common Reporting Standard (CRS)

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.

FATCA Procedures - Grantor Trust Tax Information Submission

Overview: 

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.

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

 

U.S. Tax Classification

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.

1.      Tax Form Collection

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.
 

2.      Classification for US Tax Purposes

 
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. 
 

3.      Identify Grantors

 

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.
 

Entity and FATCA Classification for Non-Financial Entities

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:
 

 
Number of Owners
Owners have Limited Liability?
 
 
Yes?
No?
 
 
1 Owner
Corporation
Disregarded Entity
 
 
2+ Owners
Corporation
Partnership
 
 
 
 

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.
 

 

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.

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