Discussion:Form 926 and IRA
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Discussion Forum Index --> Advanced Tax Questions --> Form 926 and IRA
Discussion Forum Index --> Tax Questions --> Form 926 and IRA
| 11 September 2009 | |
| My client's IRA is custodied at Schwab. One of the investments is a partnership (actually LLC) which transferred cash to a foreign corporation (under Sec. 351) in 2008. My client's IRA's share of the cash was $250,000. Is the IRA a "person" and therefore required to file Form 926? Or do we look through the IRA, therefore requiring the IRA owner (my client) to file Form 926? | |
| 11 September 2009 | |
| Yes, the IRA is a U.S. person and Form 926 is required by the IRA. There is no look-thru rule.
If the LLC is engaged is business (directly or through other pass-thru entities) or has debt financing, the income from the LLC flowing up to the IRA would be subject to the unrelated business tax. | |
JSHORT7301 (talk|edits) said: | 3 November 2009 |
| How does the IRA fill out the Form 926? Where does it file the Form 926? Does the IRA have to obtain an EIN and file the Form 926 with a 990-T?
Thanks for your help! | |
| 3 November 2009 | |
| pen and ink or computer and printer - or maybe you are asking WHO fills it out for the IRA? The trustee. The IRA, having no hands and fingers of its own, can't hold a pen or type on a computer.
it should be in the instructions ditto | |
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