Energy Partnerships as IRA's - K-1 reporting

[Jesse]

Taxpayer has several different K-1's for different energy Partnerships in which all are listed as type of entity of partner: IRA/SEP/KEOGH.

Am I correct in my understanding that any money that is withdrawn/contributed into these P-ships is done thru the IRA so if any money is actually w/drawn and transferred to the taxpayer a 1099R would be issued?

Or is the w/drawal on the actual K-1 considered taken out of the retirement fund so it needs to be reported as either a distribution or rollover?

[JG EA]

If the K-1 is an IRA, etc. then no information from it goes on the tax return. (What is in a IRA stays in the IRA.) If your client took an IRA distribution - you are right and a 1099R will be issued.

[Burke]

If you review the K-1, you will probably see that the EIN of the custodian is on it rather than the taxpayer's SSN, to whom these forms are often addressed. If that is the case, the information goes to the entitiy holding the IRA. They should issue 1099-R's to the TP if monies are withdrawn. These are quite prevalent and need to be watched for to make sure the info does not get incorporated to the taxpayer's individual 1040. Generally, you disregard them.

[JON]

Look

out for "unrelated business income" inf the IRA...

[Jesse]

Thanks all for the reassurance.

Burke you are correct. The "additional information" lists:
Partner federal ID/entity: XXX-XX-XXXX/IRA/SEP/KEOGH
Custodian Federal ID: XX-XXXXXXX
Partnership Federal ID: XX-XXXXXXX

The K-1 lists only the Partnerships Federal ID# and the Partner's identifying # = Custodian ID.