This week's Barrons has a cover article on MLPs. There is also a sidebar article titled "When Big Payouts Mean Big Headaches" concerning tax consequences of MLPs.
In the article is this statement:
"What's more, the biggest MLPs are pipeline businesses, many of which transport oil, gas and natural gas across state lines. That means you could have tax liabilities in multiple states, regardless of where you live."
Have any of you had to deal with this issue, and had to file tax returns in multiple states because of ownership of a pipeline MLP?
Most MLPs report negative numbers for income allocated to the states. Pipeline companies almost always report negative $$. Only companies into storage and terminalling have positive numbers. If you own a small number of units you are very unlikely to face any state issues on taxes.