What Tax Forms Does My IRA Custodian Handle For My Account?

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

990-T IRA Tax Return


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