Following the acquisition by ONEOK, Inc. (NYSE: OKE) on September 25, 2023, Magellan Midstream Partners, L.P. (“MMP” or “Magellan”) common units are no longer publicly traded. This article provides crucial information for former Magellan unitholders regarding tax documentation and key contacts.
Accessing Your Final Magellan Midstream Partners LP Schedule K-1
If you were a unitholder of Magellan Midstream Partners Lp, you will need to access your final Schedule K-1 form for tax purposes. These forms, along with supporting materials, are expected to be available online starting March 5, 2024.
To access your K-1 online, please visit www.taxpackagesupport.com/mmp. Schedule K-1s will also be mailed out shortly after this date. It’s important to note that receiving a Schedule K-1 does not automatically confirm prior ownership of Magellan common units.
Need Help with Your Magellan Midstream Partners LP Units?
For any specific inquiries regarding your previously held Magellan Midstream Partners LP common units, it is recommended to contact the brokerage firm where you held your units. They will be best equipped to assist you with account-specific details.
For questions specifically related to your MMP K-1 form, you can reach out to Tax Package Support directly:
- Phone: 800-230-1032
- Online: www.taxpackagesupport.com/MMP
2023 Distributions and Qualified Notice for Magellan Midstream Partners LP
Magellan Midstream Partners LP has provided a qualified notice regarding distributions paid in 2023. This notice is pursuant to U.S. Treasury Regulation § 1.1446-4. Details of the distributions and links to the qualified notices are provided in the table below:
| MMP Distributions paid in 2023 | ||
|---|---|---|
| Payment Date | Quarterly Payment | Qualified Notice |
| 09/25/23 | $0.2474 | |
| 08/14/23 | $1.0475 | |
| 05/15/23 | $1.0475 | |
| 02/14/23 | $1.0475 |
Tax Implications of the ONEOK Merger for Magellan Unitholders
The acquisition of Magellan Midstream Partners LP by ONEOK had tax consequences for MMP unitholders. According to U.S. federal income tax rules, the exchange of Magellan units for ONEOK common stock and cash is treated as a taxable sale of Magellan units.
Tax Withholding for Foreign Unitholders: It’s particularly important for foreign unitholders to be aware of potential tax withholding. Brokers handling the transaction for foreign unitholders were required to withhold 10% of the amount realized from the sale, as per Treasury Regulation Section 1.1446-4(f).
The amount realized in this sale included the value of ONEOK common stock received (based on the closing price of ONEOK on September 25, 2023, which was $66.54) plus the cash consideration received in the merger.
In Conclusion
This information is intended to assist former Magellan Midstream Partners LP unitholders in understanding the next steps following the acquisition by ONEOK. Ensure you access your Schedule K-1 for tax filing and contact the appropriate resources if you have further questions.
