Fed ID # on K-1 investment in IRA account
Who’s Fed ID # should go on a K-1received from a partnership investment held within a rollover IRA account assuming that the account does not have their own ID # ? Beneficiary ? Trustee ? Other ? Thanks for your thoughts.
Permalink Submitted by mk foss on Thu, 2011-02-17 18:03
The ID number should be that of the IRA custodian.
A few years ago IRS tried a K-1 matching program using addresses. The IRA partnership investments show the address of the IRA owner. Many CPAs wrote letters to IRS and the CPA Societies of more than one state complained to IRS and they backed off of that program. I’ve always wondered if some people actually paid tax based on the incorrect notices.