TC PipeLines, LP is a publicly traded limited partnership consisting of one general partner and many limited partners (the investing public or “unitholders”). Therefore, all income and expenses flow through to the partners to be reported on their individual tax returns. Annually, the Partnership mails each partner a tax package that includes a Schedule K-1, a State Schedule, an Ownership Schedule, a Sales Schedule and other information relevant to their tax reporting obligations. Also, the Partnership is required to file a Form 1065 with the IRS which includes a Schedule K-1 for each partner reporting their respective share of taxable income and other IRS prescribed items. Consult your personal tax advisor for proper reporting of your tax package amounts.
Q: How can I obtain a copy of, or make corrections to, my tax package (including Schedule K-1)?
A: Visit us at the tax package support website: https://www.taxpackagesupport.com/tcpipelines or call: 1-877-699-1091 or write to us at:
TC PipeLines, LP
K-1 Tax Package Support
P.O. Box 799060
Dallas, TX 75379-9060
The Partnership will use the information that you provide to update its records and will send you corrected tax information.
Q: Why am I receiving a Schedule K-1 rather than a Form 1099?
A: Form 1099's are used to report dividends and interest (among other items), rather than partnership information.
Q: Do I report any cash I received as my taxable income?
A: No. You should report the income items shown on your Schedule K-1 provided to you by the Partnership.
Q: Why is the amount of cash I received different than the amount I have to report on my individual income tax return?
A: The cash you receive is a return of capital and represents your share of the Partnership's available cash. The amount you are required to include in your individual income tax return is your share of the Partnership's income and related items, allocated based on the number of units you owned during the year and reported on your Schedule K-1. These amounts differ due to changes in cash flow and depreciation (a non-cash expense).
Q: How is my basis affected by cash distributions and partnership net income?
A: The cash distributions you receive are a return of capital and decrease your basis in the Partnership. At year end your basis is increased by your share of the Partnership's taxable income allocated to you on your Schedule K-1.
Q: Is TC PipeLines, LP registered as a tax shelter?
A: The Partnership is registered as a tax shelter. The tax shelter number assigned by the IRS is 99140000010. This number should be used when completing Form 8271, Investor Reporting of Tax Shelter Registration Number.
Q: What States do I have to file tax returns in as a result of owning TC PipeLines, LP common units?
A: In addition to the filing requirements of the state in which you live, you may be required to file a non-resident tax return in the states in which the Partnership operates. The Partnership operates in twenty-three states, nineteen of which impose income tax on a Partner's share of Partnership income allocable to such state. The states with Partnership operations as well as an income tax are Arizona, California, Connecticut, Idaho, Illinois, Indiana, Iowa, Maine, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Hampshire, New York, North Dakota, Oregon, Vermont, and Wisconsin. Nevada, South Dakota, Washington and Wyoming also contain partnership operations but do not impose an income tax. Consult your personal tax advisor for proper reporting of your tax package amounts.
Q: Where do I find my share of Qualified Publicly Traded Partnership Income for purposes of computing my new 20% deduction under IRC Section 199A?
A: Your share of Qualified Publicly Traded Partnership Income for this purpose can be found on Schedule K-1, Line 20AD.