Taxes on MLP's in Iras's

Forum|Forum|3 years ago
July 10, 2022
1 reply
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My investment firm is paying the IRS the tax amount due from my IRA because there was over $1,000 of UBTI from an MLP that I own. They sent me a copy of the 990-T and will take the money from my IRA account. Is there state tax due on this income? They don't mention anything about taxes due in the state of CA, where I live. Do I have to redo my taxes from 2021 if they are paying the additional amount due?

Thank you to the CPA who knows about MLP'S!!!

Not A Product Question

Best answer by TomD8

"Do I have to redo my taxes from 2021 if they are paying the additional amount due?

No. An IRA is an exempt entity separate from the beneficial owner of the IRA and can be subject to taxation on its own. The responsibility for paying those taxes rests with the IRA custodian.

TomD8Answer

Employee

"Do I have to redo my taxes from 2021 if they are paying the additional amount due?

No. An IRA is an exempt entity separate from the beneficial owner of the IRA and can be subject to taxation on its own. The responsibility for paying those taxes rests with the IRA custodian.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Critter-3

Agreed ... the 990 form was filled in , filed and paid by the IRA custodian and a copy was sent to you for your information only and is not put anywhere on a personal income tax return so there is nothing to fix or amend.