As of January 1st, 2023, the Internal Revenue Service (IRS) will charge a withholding tax any time a non-U.S. person sells a Publicly Traded Partnership (PTP) that earns income connected to the United States.
This means that brokerages like Wealthsimple that offer trading of PTPs must withhold 10% from all sells of these securities for anyone not considered to be a U.S. person. This withheld amount must then be sent directly to the IRS and not back to you.
How Wealthsimple deducts your withholding tax
As a non-U.S. person, when you sell a U.S. PTP with Wealthsimple, we will be required to deduct 10% from the total amount of cash you receive for selling the security. This means that you will only see 90% of the sale price added to your available cash balance in your Wealthsimple account. The remaining 10% that is withheld from your sale is then sent to the IRS.
As we deduct the withholding tax automatically at the time of selling your security, we require no further action on your end.
What securities are known to be Publicly Traded Partnerships?
We have provided a list of securities considered to be Publicly Traded Partnerships below.
Security Name | Security Symbol |
CVR Partners LP | UAN |
MPLX LP | MPLX |
Icahn Enterprises LP | IEP |
Evolve Transition Infrastructure LP - Unit | SNMP |
NGL Energy Partners LP | NGL |
Calumet Specialty Products Partners L.P. | CLMT |
Dorchester Minerals LP | DMLP |
DCP Midstream LP | DCP |
Genesis Energy L.P. | GEL |
New England Realty Associates LP (Class A) | NEN |
Crestwood Equity Partners LP | CEQP |
Westlake Chemical Partners LP | WLKP |
Magellan Midstream Partners L.P. | MMP |
Energy Transfer LP | ET |
Sunoco LP | SUN |
Holly Energy Partners L P / Holly Energy Finance Corporation | HEP |
CSI Compressco LP | CCLP |
Western Midstream Partners LP | WES |
CrossAmerica Partners LP | CAPL |
Cheniere Energy Partners LP | CQP |
Enterprise Products Partners L P | EPD |
Martin Midstream Partners LP | MMLP |
Nustar Energy L P | NS |
Natural Resource Partners LP | NRP |
AllianceBernstein Holding Lp | AB |
Suburban Propane Partners LP | SPH |
Plains All American Pipeline LP | PAA |
Gyrodyne LLC | GYRO |
Alliance Resource Partners, LP | ARLP |
Cedar Fair L.P. | FUN |
Greystone Housing Impact Investors LP | GHI |
DCP Midstream Units | D4P |
DCP Midstream Units | 0S1P |
Plains All American Pipeline Units | PLM |
Martin Midstream Partners Units | MPB |
Beaver Coal Ltd | BVERS |
AllianceBernstein Holding Units | 0S0N |
Calumet Specialty Products Partners Units | C1A |
MPLX Common Units | 0S2U |
CrossAmerica Partners Common Units | LG0 |
Martin Midstream Partners Units | 0S2W |
Crestwood Equity Partners Units | IY12 |
Magellan Midstream Partners Units | WEP |
Sunoco Common Units | SUP |
MPLX Common Units | M0X |
Cedar Fair Units | 7CF |
Central Energy Partners LP | ENGY |
Energy Transfer Equity Units | 0S1Z |
Genesis Energy Units | GE3 |
Ferrellgas Partners L.P - Unit - Class A | FGPR |
Plains All American Pipeline Units | 0S3F |
Alliance Resource Partners Units | AR6 |
NuStar Energy Units | N0U |
Natural Resource Partners Units | 0S32 |
Dorchester Minerals Units | 9DM |
Enterprise Products Partners Units | EPD |
Natural Resource Partners Units | NRZ1 |
Atlas Energy Group Units | YAE |
Suburban Propane Partners Common Units | 5BS |
CSI Compressco Units | 8OC |
Westlake Chemical Partners Units | 15W |
ECA Marcellus Trust I | ECTM |
Cheniere Energy Partners Units | 0S1F |
Chesapeake Granite Wash Trust | CHKR |
Chesapeake Granite Wash Units | CWG |
Energy Transfer Equity Units | 48E |
Enterprise Products Partners Units | 0S23 |
Icahn Enterprises Units | 2IN |
NGL Energy Partners Units | 2NG |
AllianceBernstein Holding Units | W4M |
Cheniere Energy Partners Units | C64 |
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