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ComplianceMarch 09, 2021

Wolters Kluwer launches Capital Changes 1446F PTP Alert

Automation relieves burden of finding, analyzing qualified notices for publicly traded partnerships

To assist brokers in complying with new Internal Revenue Service regulations that go into effect January 1, 2022, Wolters Kluwer Compliance Solutions has launched Capital Changes 1446F PTP Alerta technology that eases broker withholding compliance burdens by automating the collection and review of qualified notices issued by publicly traded partnerships (PTPs). Under the new regulations, qualified notices must be evaluated in connection with determining a broker’s withholding obligations. 

New regulations issued under Internal Revenue Code Section 1446(f) expand and change earlier rules relating to qualified notices. The new regulations expand the scope of earlier rules applicable to withholding agents and their obligation to analyze qualified notices. Brokers must constantly monitor for qualified notices as they are published for PTPs in order to comply with the new regulations. Reviewing qualified notices can also be challenging because they do not have a standard format, nor are they stored in a central, online location. 
Final regulations issued in October 2020 require brokers to withhold 10 percent of proceeds received on certain PTP sales and distributions that occur on or after January 1, 2022, unless an exception applies. Capital Changes 1446F PTP Alert addresses a critical challenge for brokers in complying with the new regulations: the ongoing task of monitoring, identifying and analyzing of PTP distributions and associated qualified notices.

“This technology provides advance notification of critical information needed by brokers to comply with this new withholding requirement, allowing brokers to shift the burden of finding and analyzing qualified notices from themselves to Wolters Kluwer tax experts,” said Steven Meirink, Executive Vice President and General Manager,  Wolters Kluwer Compliance Solutions. “The technology provides key information in a compliance-focused, tax operations format that allows for easy searching, sorting, and exporting of data, helping brokers minimize risk and maximize efficiency.”

Governance, Risk & Compliance is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to help ensure compliance with ever-changing regulatory and legal obligations, manage risk, increase efficiency, and produce better business outcomes.
About Wolters Kluwer

Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the health, tax & accounting, governance, risk & compliance, and legal & regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

David Feider
David Feider
Corporate Communications Manager, Banking & Regulatory Compliance
Governance, Risk & Compliance Division
Paul Lyon
Paul Lyon

Global Corporate Communications Director: Global Marketing, Communications & Planning

Governance, Risk & Compliance Division
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