Form 990T preparation fees paid from an IRA
I have a client that has an IRA that has earned UBTI that exceeds $1,000 per year. I will be preparing the 990T forms. My question is: if my fees are paid from the IRA should they be treated as a distribution to the IRA owner or as an expense of the IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2016-07-19 20:26
Since the 990 filing and the UBIT are required expenses of the IRA, there would be no reported distribution, so the IRA Custodian should disberse your fee and not report it on a 1099R.