Tag Archives: IRS

Self-Directed IRA + K-1 = IRS scrutiny concerns

April 24, 2023Recent News, Self Directed IRA, TaxIRS, K-1, self-directed IRA, UBTI, UDFIWarren Baker

My clients frequently ask, “what self-directed IRA investments have the most potential for IRS scrutiny?” While most clients think this question is related to the specific type of investment, to me, the question is more about the collateral consequences of a particular investment. IRS scrutiny is very rarely a random occurrence – instead, the IRS questions … Continue reading Self-Directed IRA + K-1 = IRS scrutiny concerns →

Lessons from McNulty Case (hint: precious metals within IRA-owned LLC = trouble!)

November 19, 2021Recent News, Self Directed IRA, TaxIRS, self-directed IRAAngela Baker

Yesterday, the US Tax Court released their ruling in the case of McNulty vs. Commissioner of IRS (157 T.C. No. 10, November 18, 2021). In short, it wasn’t pretty for a husband and wife who had two self-directed IRAs and IRA-owned LLCs and used those IRA/LLCs to hold precious metals (e.g., American Eagle coins) in a safe at … Continue reading Lessons from McNulty Case (hint: precious metals within IRA-owned LLC = trouble!) →

Is the IRS getting more liberal with 60-day rollover mistakes? [Tip: blame your spouse!]

June 11, 2018Recent News, Tax401k-to-IRA rollover, 60-day rollover, IRS, Private Letter RulingWarren Baker

In a Private Letter Ruling (PLR) dated 3/5/18 (released by IRS 5/31/18; see full document here: PLR 201822033), the IRS waived the 60-day rollover requirement for the movement of retirement funds between a qualified employer retirement plan and an IRA (i.e., the individual involved took a distribution from her qualified plan but then mistakenly didn’t … Continue reading Is the IRS getting more liberal with 60-day rollover mistakes? [Tip: blame your spouse!] →

Publication Notice: “The Care & Feeding of Large IRAs” (Trusts & Estates Magazine, Dec. 2016)

December 5, 2016Recent News, Self Directed IRAIRS, large IRAs, self-directed IRA, Trusts & Estates MagazineWarren Baker

I am thrilled to announce the publication of my collaboration article with Natalie Choate, Esq. (a prolific writer and presenter in the area of retirement benefits), entitled “The Care & Feeding of Large IRAs“. This article was published in Trusts & Estates Magazine on December 1, 2016. A virtual copy of the magazine can be found … Continue reading Publication Notice: “The Care & Feeding of Large IRAs” (Trusts & Estates Magazine, Dec. 2016) →

Pending GAO Report of Self-Directed IRAs

January 13, 2016Recent News, Self Directed IRAGAO, IRS, Ron Wyden, self-directed IRAWarren Baker

As I referenced in my last post (related to my recent newsletter), I was recently interviewed by seven members of the U.S. Government Accountability Office (GAO) related to a new report they are putting together on “self-directed” retirement accounts (i.e., IRAs and 401(k) accounts that are invested into “nontraditional” assets; and also “ROBS” structures, which involve … Continue reading Pending GAO Report of Self-Directed IRAs →

My Summa Holdings case summary published in Journal of Accountancy

October 1, 2015Recent News, Self Directed IRAIRS, self-directed IRA, Summa Holdings v. CommissionerWarren Baker

I am proud to announce the publication of my summary of the Tax Court case Summa Holdings (T.C. Memo. 2015-119) in the October 2015 edition of the Journal of Accountancy. The article is entitled “Substance-over-form doctrine used to nix growth within Roth IRAs” and can be found by clicking here.

Presentation: “Self-Directed IRAs: New Legal Developments” – By: Warren L. Baker

August 17, 2015Recent News, Self Directed IRAForm 5498, Form 990T, GAO, IRA/LLC, IRS, presentation, prohibited transaction, RMD, ROBS, Roth IRA, self-directed IRA, UBTIWarren Baker

If you haven’t caught one of my recent presentations on self-directed IRAs and related legal/tax developments, but you would like to, my recent presentation for Clear Law Institute (originally aired on August 5th) is available for streaming on-demand using this link: http://clearlawinstitute.com/shop/on-demand-webinars/self-directed-iras-new-legal-developments/ Overview of Presentation: The use of “self-directed IRAs” to invest in real estate, private equity, … Continue reading Presentation: “Self-Directed IRAs: New Legal Developments” – By: Warren L. Baker →

GAO’s “Multimillion Dollar IRA” Report Released

November 19, 2014Recent News, Self Directed IRAGAO, IRS, Roth IRA, self-directed IRAWarren Baker

Today, the federal Government Accountability Office (GAO) released its report on “large balance IRAs”. The full report is 99 pages long, but a summary can be found here. For me personally, the report is important in multiple ways: I was interviewed by a GAO officer during their preparation for writing the report. Almost all of my … Continue reading GAO’s “Multimillion Dollar IRA” Report Released →

Boom! Boom! Boom! IRS fires three shots across the bow of self-directed IRA investors

October 10, 2014Recent NewsEllis v. Commissioner, Form 5498, IRA, IRS, Peek v. Commissioner, Roth IRA, self-directed IRA, Tax CourtWarren Baker

For those of you who are interested in self-directed IRA topics but who are not members of the Taxation Law section of the Washington State Bar Association (quite a few of you I’m sure!), I wanted to share with you my latest full length article. The article, entitled “Boom! Boom! Boom! IRS fires three shots … Continue reading Boom! Boom! Boom! IRS fires three shots across the bow of self-directed IRA investors →

Amended FORM 5498 reporting requirements for IRA custodians in 2014. Do changes signal more scrutiny on “nontraditional” investments within self-directed IRAs?

October 1, 2014Self Directed IRA, TaxEllis v. Commissioner, Form 1099-R, Form 5498, IRA, IRS, Peek v. Commissioner, self-directed IRAWarren Baker

The current draft instructions for the 2014 version of Form 5498 reflect a change in the way the IRS receives information from IRA custodians. Under current law, IRA custodians must report certain information about every IRA they hold – this is done using Form 5498. Whether IRA account holders realize it or not, the federal … Continue reading Amended FORM 5498 reporting requirements for IRA custodians in 2014. Do changes signal more scrutiny on “nontraditional” investments within self-directed IRAs? →