For your information, Corporate Transparency Act in a Public Service Announcement

Corporate Transparency Act (CTA) Notice

As we strive to be the industry leader in client information and education, we at American IRA want to inform you of some important regulations which could affect your self-directed IRA (SDIRA). As always, you are encouraged to consult with your tax professional on how these and other regulations could impact your retirement.

To help prevent and combat money laundering, terrorist financing, corruption, and tax fraud, the federal Corporate Transparency Act (CTA) requires corporations, limited liability companies (LLCs), and other similar entities conducting business in the United States to report their ownership or controlling information to the U.S. government.

Unless exempt, these entities must file beneficial ownership reports with the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of Treasury. Reporting deadlines vary. Check the FinCEN website https://www.fincen.gov/boi for the applicable exemptions and deadlines. Significant penalties may apply for failure to submit the required Beneficial Ownership Information (BOI) on time. Reporting entities will need to obtain an EIN (Employer Identification Number).

Corporate Transparency Act

IMPORTANT NOTE: This notice is made as a public service announcement. American IRA does not administer the CTA program. We encourage you to review the information prepared by FinCEN and found here: https://www.fincen.gov/boi

IRS regulations state that an EIN (Employer Identification Number) is required for all SDIRA investments that generate Unrelated Business Income Tax (UBIT) or Unrelated Debt Finance Income Tax (UDFI). Investment examples might include but are not limited to:

  • Purchasing any type of real estate or personal property through your SDIRA or your SDIRA-Owned LLC (“Checkbook IRA”)
  • Purchasing an interest in a partnership, LLC or other entity required to file a tax return
  • Purchasing Promissory Notes
  • Private lending
  • If the business is required to issue or receive 1099s, 1098s or K-1s

This EIN is separate from the custodian’s EIN you provided when registering your investment. You can read more about this regulation at this link: https://www.irs.gov/businesses/partnerships/ira-partner-disclosure-faq

Currently, American IRA is not able to request the EIN on your behalf. As such, you are strongly encouraged to work with your CPA to obtain the EIN. If you prefer to complete this task yourself, you can apply for the EIN for free at: https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

For more information about UBIT and your IRA investments, please visit our website at https://americanira.com/

American IRA is a passive administrator, and, as such, does not provide investment advice, sell investments or offer any tax or legal advice. American IRA is not a fiduciary nor is it affiliated with any financial professional, investment, investment sponsor, tax or legal advisor. You are urged to conduct your own due diligence with following recent changes to rules and regulations regarding your self-directed IRA.