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Publicly Traded Partnerships: Well… MLP Qualifying Income Regulations Were Here…

Following the inauguration, President Trump’s Chief of Staff issued a memorandum implementing a regulatory freeze common to changes in administration. The freeze withdraws all unpublished regulations for further review and approval by the new administration, including the final regulations issued last Thursday under Section 7704 of the Internal Revenue Code to provide qualifying income guidance with respect to the natural resource activities of publicly traded partnerships or “MLPs.” The unpublished final regulations had been scheduled to be published in the Federal Register on January 24, 2017.

The timing of any review and approval of the unpublished regulations is uncertain. For now, the withdrawn final regulations will go back to the IRS and we’ll continue living under the proposed regulations. As a practical matter, the withdrawn regulations will continue to be relevant to MLPs and those considering the formation of an MLP. Although the withdrawn final regulations are no longer authority which can be relied on unless published in the same or a modified form, the withdrawn regulations are indicative of the IRS position on many issues with respect to qualifying income.

Copyright © 2021, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume VII, Number 23
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About this Author

Thomas W. Ford, Jr., Tax Attorney, Andrews Kurth Law Firm
Partner

Tom's practice includes experience in the federal income taxation of business transactions and business entities, including formations, mergers and securities offerings of partnerships (publicly traded "master limited partnerships" and private) and joint ventures and dispositions of interests therein; oil, gas and mineral transactions; mergers, acquisitions and spin-offs of corporations; royalty trusts; real estate investment trusts; and financially troubled entities, including financial institutions.

713-220-4498
Allison D. Mantor, Income Tax Lawyer, Mergers, Acquisitions
Partner

Allison's practice includes experience in various federal income tax matters with an emphasis on domestic business transaction planning. She has significant experience advising both private partnerships and joint ventures and publicly-traded partnerships (MLPs) on capital formation, acquisition and recapitalization activities and has served as tax counsel to both issuers and underwriters in connection with numerous MLP initial public and follow-on offerings. Allison also advises clients on federal income tax issues in mergers and acquisitions, including tax-free...

713.220.3929
Robert J. McNamara, Federal Tax Attorney, Andrews Kurth Law firm
Partner

Robert’s practice focuses on advising U.S. based businesses and investors on federal income tax matters with an emphasis on business transaction planning. Robert regularly counsels publicly-traded partnerships (MLPs) on a wide variety of tax issues, including formation, on-going qualification, and acquisition and disposition activities. Robert handles the tax aspects of public and private offerings of debt and equity securities and has advised companies on numerous public and private acquisitions, dispositions and joint ventures, including tax-free reorganizations and like-kind exchanges...

713-220-4413
Jocelyn Tau, Andrews Kurth Law Firm, Tax Attorney
Associate

Jocelyn is an Associate in the Tax section of the Houston office. One certainty about taxes is that the codes and statutes governing businesses are complex and ever changing. Andrews Kurth tax lawyers guide companies and individuals through the tangle of federal and state tax laws. In keeping with our Straight Talk approach, we decode tax talk and communicate with clients to understand the big picture tax implications and meet their business goals. Whether counseling on a business or personal income tax issue or resolving regulatory and audit issues, our viewpoint is...

713-220-4433
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