Computes a multi-year tax projection for a publicly traded MLP position, applying the IRS Partner's Basis Worksheet methodology (Lines 1-14) per IRC §705 (basis computation), §731(a) (distributions exceeding basis), §733 (basis reduction), §751 (hot asset recapture), §752 (liability allocation), ...
Part of the MLP Tax Computation Engine server.
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AI agents call mlp_projection to perform operations in MLP Tax Computation Engine. While the risk category is not fully classified, applying a rate limit gives you visibility into how often the tool is called and prevents unexpected bursts of activity from autonomous agents.
Applying a policy to mlp_projection gives you an audit trail of every call an AI agent makes. Even for low-risk tools, visibility into agent behaviour helps you debug issues, optimise workflows, and maintain compliance with your organisation's security requirements.
Apply a rate limit to control usage and monitor for unexpected behaviour.
{
"version": "1",
"default": "deny",
"tools": {
"mlp_projection": {
"limits": [
{
"counter": "mlp_projection_rate",
"window": "minute",
"max": 60,
"scope": "grant"
}
]
}
}
}See the full MLP Tax Computation Engine policy for all 6 tools.
These attack patterns abuse exactly the kind of access mlp_projection gives an agent. Each links to the full case and the policy that stops it:
Other other tools across the catalogue. The same approach applies to each: rate-limit and validate the arguments.
Computes a multi-year tax projection for a publicly traded MLP position, applying the IRS Partner's Basis Worksheet methodology (Lines 1-14) per IRC §705 (basis computation), §731(a) (distributions exceeding basis), §733 (basis reduction), §751 (hot asset recapture), §752 (liability allocation), §1014 (stepped-up basis at death), and §199A (QBI deduction). Returns year-by-year basis erosion, §751 accumulation, annual federal tax, terminal FMV, §1014 step-up value at death, and the break-even sell price. Use when: User holds direct units of a midstream MLP (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN) and wants to model long-term tax outcomes — when basis reaches zero, total tax paid over the hold horizon, deferred tax eliminated by §1014 step-up at death, or the unit price at which selling matches holding through inheritance. Single position, single lot. Don't use for: 1099-DIV ETFs (AMLP, MLPX, AMZA — these use RIC structure, pay corporate-level tax, and issue 1099-DIV instead of K-1; use a standard cost-basis calculator instead). Multi-position estate analysis — use mlp_estate_planning. Computing basis from actual K-1 data the user has in hand — use k1_basis_compute (single year) or k1_basis_multi_year. Limitations: Single position, single lot — for multi-position portfolios and per-lot optimal sell ordering, see lucasandersen.ai. Federal-level only — does not include state-level basis adjustments or state estate tax. §751 recapture is estimated from default ROC assumptions; actual recapture depends on the partnership's hot-asset disposition schedule. Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.. It is categorised as a Other tool in the MLP Tax Computation Engine MCP Server, which means it performs auxiliary operations.
Register the MLP Tax Computation Engine MCP server in PolicyLayer and add a rule for mlp_projection: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches MLP Tax Computation Engine. Nothing to install.
mlp_projection is a Other tool with low risk. Read-only tools are generally safe to allow by default.
Yes. Add a rate_limit block to the mlp_projection rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.
Set action: deny in the PolicyLayer policy for mlp_projection. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.
mlp_projection is provided by the MLP Tax Computation Engine MCP server (https://api.lucasandersen.ai/mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.
Deterministic rules across all 6 MLP Tax Computation Engine tools. Per-identity grants. Full audit log. Live in minutes. Nothing to install.
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