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Tax

TC PipeLines, LP (the Partnership) is a publicly traded limited partnership which, as an entity, is generally not subject to federal or state income tax. Instead, partners are required to report their allocable share of the Partnership's items of taxable income, gain, deduction or loss in their individual income tax returns as though each partner had incurred such items directly.

The Partnership determines taxable income annually and allocates it to the partners on Schedule K-1 in accordance with the Partnership agreement. Partners are required to include their share of the Partnership's taxable income on their tax return and add the amount to the tax basis of their units. The amount of taxable income allocated may exceed or be less than the amount of cash distributed in the year. Generally, cash distributions are considered a return of capital and reduce the tax basis of a partner's units. Please note, the Partnership generates income that is eligible for the Section 199A 20% tax deduction.

Schedule K-1

TC PipeLines, LP plans to mail 2019 Tax Packages to unitholders, including Schedule K-1 by March 5, 2020. We anticipate that unitholders may also access the 2019 K-1 information online beginning February 28, 2020, through our online K-1 reporting link.

State specific Schedule K-1 forms are scheduled to arrive on this site in late May 2020.

A call center is available to assist TC PipeLines, LP unitholders with questions concerning information contained in their Schedule K-1. Please call K-1 Tax Package Support between 8:00 AM and 5:00 PM Central Time at this toll free number.

1-877-699-1091 (Toll-free)

TC PipeLines, LP will not be preparing any partnership tax reporting information that may be required for jurisdictions outside of the United States.

Frequently asked questions

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.

For information about Tax packages, visit or phone:

Tax Package Support web site

1-877-699-1091  (Toll-free)

 

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.

Form 1099's are used to report dividends and interest (among other items), rather than partnership information.

No. You should report the income items shown on your Schedule K-1 provided to you by the Partnership.

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).

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.

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.

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. 

For more information:

  • State specific Schedule K-1 forms are available on our tax reporting site.  
  • Consult your personal tax advisor for proper reporting of your tax package amounts.

Your share of Qualified Publicly Traded Partnership Income for this purpose can be found on Schedule K-1, Line 20Z.  

Discuss this item with your personal tax advisor to ensure you maximize your deduction under the law.

If your Schedule K-1, Box 1, shows a loss, this loss is subject to passive activity loss limitations for this partnership only making them not deductible currently. Instead the passive losses are accumulated and carried forward. Passive losses which are limited in a certain period can be deducted in later years when you are allocated income from this partnership or when units are sold. Discuss this item with your personal tax advisor to ensure you maximize your deduction under the law.