Yes. USA Compression Partners (USAC) issues a Schedule K-1; if you also own Energy Transfer (ET), a second USAC K-1 arrives inside the ET tax package.
See What Happens Next
What Is USA Compression Partners?
USA Compression Partners (USAC) is a publicly traded partnership (PTP) in the energy sector. As a PTP, it issues Schedule K-1s to unitholders instead of 1099-DIVs, which creates unique tax reporting requirements.
Like all MLPs, USAC distributions are not dividends — they're partnership distributions that reduce your cost basis over time. This makes accurate basis tracking essential.
Key Insight
If you own Energy Transfer (ET), you already receive a USAC K-1 as part of the ET package. Direct USAC unitholders also receive a separate K-1. Do not combine them.
When to Expect Your K-1
2026 tax year (2027 season): not yet announced.
2025 tax year (2026 season): released February 20, 2026 at taxpackagesupport.com/usac, phone 1-855-521-8151. Source · checked September 22, 2026
How to access your USAC K-1:
- Tax Package Support: taxpackagesupport.com/usac
- Phone: 1-855-521-8151
- You will need your SSN and the number of units held at year end
📅 Your 2025 USAC K-1 is available now — enter this year's numbers before you file.
→ Update your basis in the K-1 TrackerWhy Your Broker's USAC Basis Is Wrong
Your broker tracks your original purchase price for USAC but never sees your K-1. Each year, distributions, income allocations, liability changes, and depreciation deductions adjust your cost basis — and your broker makes none of these adjustments.
After just a few years, the gap between your broker's basis and reality can be thousands of dollars. When you sell, that gap becomes a tax surprise — and the IRS already knows the right number because they receive a copy of every K-1.
Warning
The longer you hold USAC, the wider the gap grows. If you've held for 5+ years, your basis may be 25–50% lower than your broker's number. Don't discover this in the year you sell.
Calculate Your USAC Basis
Enter data from your USAC K-1 to calculate your adjusted basis for one year. Run this for each year you've held USAC to see cumulative erosion.
USA Compression Partners Quick Basis Calculator
Enter your K-1 data to calculate your adjusted basis using the IRS worksheet
Track your USAC basis
The K-1 Basis Tracker implements the full IRS Partner's Basis Worksheet for USAC. Enter your K-1 data and see the real gap between your broker's number and your IRS-adjusted basis.
In the K-1 tracker, typing your numbers in uploads nothing; an uploaded K-1 PDF is read by a third-party AI provider. Privacy
Open K-1 Basis Tracker📬 Get notified when next year's USAC K-1 drops — plus annual filing reminders.
No spam. Unsubscribe anytime.
Key Tax Considerations
When you sell USAC units, a portion of your gain may be recharacterized as ordinary income under IRC §751 — taxed at up to 37%, not the capital gains rate. The more physical infrastructure the MLP owns, the larger your §751 exposure grows each year.
USAC also operates across multiple states, which may create nonresident filing obligations. Review your K-1 state schedule for allocations above each state's filing threshold.
Key Takeaways for USAC Investors
- 1.USAC is a PTP — you get a K-1, not a 1099-DIV
- 2.Your broker's cost basis is wrong after the first year of K-1 adjustments
- 3.Distributions reduce your basis — they're not immediately taxable
- 4.Track your basis each year to avoid a tax surprise when you sell
- 5.Check the release-date section for the current season and don't file before your K-1 arrives
Frequently Asked Questions
Yes. USA Compression Partners (USAC) is a publicly traded partnership (PTP). All unitholders receive a Schedule K-1 (Form 1065) instead of a 1099-DIV.
USAC distributions reduce your cost basis under IRC §733. Most MLP distributions are classified as return of capital (ROC), meaning they're not immediately taxable but lower your basis each year. After several years, the gap between your broker's basis and your real IRS-adjusted basis can be thousands of dollars.
USA Compression Partners K-1 packages are released February 20, 2026 at taxpackagesupport.com/usac, phone 1-855-521-8151 (tax year 2025). The current season's status is in the release-date section above.
Your broker reports your original purchase price, but the IRS expects your K-1-adjusted basis. Using the wrong basis underreports your gain and can trigger IRS notices. You must override on Form 8949 using adjustment code B.
Disclaimer: This content is for educational and informational purposes only. It does not constitute tax, legal, or financial advice. MLP taxation involves complex rules including basis tracking, §751 recapture, passive activity limitations, and multi-state filing. Consult a qualified tax professional before making tax or investment decisions.
Lucas Andersen is not a CPA, Enrolled Agent, or tax attorney. Information reflects rules as of the date published and may change. Always verify with current IRS guidance.