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 Symbol | Security Name |
AR6 | Alliance Resource Partners Units |
ARLP | Alliance Resource Partners, LP |
AB | AllianceBernstein Holding Lp |
0S0N | AllianceBernstein Holding Units |
W4M | AllianceBernstein Holding Units |
ATLS | Atlas Energy Group LLC |
YAE | Atlas Energy Group Units |
BVERS | Beaver Coal Ltd |
CLMT | Calumet Specialty Products Partners L.P. |
C1A | Calumet Specialty Products Partners Units |
FUN | Cedar Fair L.P. |
7CF | Cedar Fair Units |
ENGY | Central Energy Partners LP |
CQP | Cheniere Energy Partners LP |
C64 | Cheniere Energy Partners Units |
0S1F | Cheniere Energy Partners Units |
CHKR | Chesapeake Granite Wash Trust |
CWG | Chesapeake Granite Wash Units |
CEQP | Crestwood Equity Partners LP |
IY12 | Crestwood Equity Partners Units |
LG0 | CrossAmerica Partners Common Units |
CAPL | CrossAmerica Partners LP |
CCLP | CSI Compressco LP |
8OC | CSI Compressco Units |
UAN | CVR Partners LP |
DCP | DCP Midstream LP |
D4P | DCP Midstream Units |
0S1P | DCP Midstream Units |
DMLP | Dorchester Minerals LP |
9DM | Dorchester Minerals Units |
ECTM | ECA Marcellus Trust I |
0S1Z | Energy Transfer Equity Units |
48E | Energy Transfer Equity Units |
ET | Energy Transfer LP |
EPD | Enterprise Products Partners L P |
EPD | Enterprise Products Partners Units |
0S23 | Enterprise Products Partners Units |
SNMP | Evolve Transition Infrastructure LP - Unit |
FGPR | Ferrellgas Partners L.P - Unit - Class A |
GEL | Genesis Energy L.P. |
GE3 | Genesis Energy Units |
GHI | Greystone Housing Impact Investors LP |
GYRO | Gyrodyne LLC |
HEP | Holly Energy Partners L P / Holly Energy Finance Corporation |
HHN | Holly Energy Patners Units |
IEP | Icahn Enterprises LP |
2IN | Icahn Enterprises Units |
MMP | Magellan Midstream Partners L.P. |
WEP | Magellan Midstream Partners Units |
MMLP | Martin Midstream Partners LP |
MPB | Martin Midstream Partners Units |
0S2W | Martin Midstream Partners Units |
0S2U | MPLX Common Units |
M0X | MPLX Common Units |
MPLX | MPLX LP |
NRP | Natural Resource Partners LP |
NRZ1 | Natural Resource Partners Units |
0S32 | Natural Resource Partners Units |
NEN | New England Realty Associates LP (Class A) |
NGL | NGL Energy Partners LP |
2NG | NGL Energy Partners Units |
NS | Nustar Energy L P |
N0U | NuStar Energy Units |
PAA | Plains All American Pipeline LP |
PLM | Plains All American Pipeline Units |
0S3F | Plains All American Pipeline Units |
5BS | Suburban Propane Partners Common Units |
SPH | Suburban Propane Partners LP |
SUP | Sunoco Common Units |
SUN | Sunoco LP |
WES | Western Midstream Partners LP |
WLKP | Westlake Chemical Partners LP |
15W | Westlake Chemical Partners Units |
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