Directed IRA is responsible for some tax forms, whereas the IRA owner is responsible for others, as necessary.
|IRS Form||Who Files?||What Does It Report||Due Date|
|Form 5498||Filed to the IRS by Directed IRA.||IRA contributions, Roth Conversions, the account's fair market value as of 12/31 of the current year, and required minimum distributions taken.||May 31st|
|Form 1099-R||Filed to the IRS by Directed IRA.||IRA distributions for the year, Roth IRA conversions, and also rollovers that are not direct IRA trustee-to-IRA trustee.||January 31st|
|Form 1065 - Partnership Tax Return||Filed to the IRS by Account Owner.||If your IRA is an owner in an LLC, LP, or other partnership, then the partnership should file a 1065 tax return for the company to the IRS, and should issue a K-1 to your IRA for its share of income or loss. Make sure the accountant preparing the company return knows to use your custodian’s tax ID for your IRA’s K-1s, and not your personal SSN (or your IRA’s tax ID if it has one for UBIT 990-T tax return purposes). If your IRA owns an LLC 100%, then it is disregarded for tax purposes (a single-member LLC), and the LLC does not need to file a tax return to the IRS.||March 15th|
|Filed to the IRS by Account Owner.||If your IRA incurs Unrelated Business Income Tax (UBIT), then it is required to file a tax return. The IRA files a tax return and any taxes due are paid from the IRA. Most self-directed IRAs don’t need to file a 990-T for their IRA, but you may be required to file for your IRA if your IRA obtained a non-recourse loan to buy a property (UDFI tax), or if your IRA participates in non-passive real estate investments such as: Construction, development, or on-going short-term flips. You may also have UBIT if your IRA has received income from an active trade or business, such as being a partner in an LLC that sells goods and services (C-Corp dividends exempt). Rental real estate income (no debt leverage), interest income, capital gain income, and dividend income are exempt from UBIT tax.||April 15th|