IRS Says Fracking Service Income Qualifies For MLP Status
Law360, New York (May 5, 2015, 12:52 PM EDT) -- The Internal Revenue Service on Tuesday released proposed regulations on qualifying income from service providers to the oil and gas industry for master limited partnership treatment and explicitly granted fracking services access to the favorable tax status.
The IRS had previously ruled that individual fracking services companies could be treated as MLPs, which are taxed only at the partner level rather than both at the corporation level and partner level, but the law remained vague. By statute, 90 percent of a publicly traded partnership's income must be qualifying income to be granted MLP status.
The agency began receiving so many requests...
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