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Employer Identification Numbers (EINs) For IRA Partners
We assist investment sponsors in meeting updated compliance requirements related to reporting unique Employer Identification Numbers (EINs) on Form 1065, Schedule K-1
What changed?
As of the 2023 tax season, partnerships with IRA partners receiving allocations or unrelated trade of business taxable income (UBTI) must report both the Custodian EIN & a unique EIN of the IRA partner on Form 1065, Schedule K-1, Line 20, Code AH.
This is a change from the standard practice of relying solely on the custodian’s EIN for IRA investments.
What action is required?
To comply with new IRS requirements, if your partnership reports UBTI on line 20 of your K1, code V, the partnership must report the Custodian EIN on K-1 line E, and a unique EIN on 20AH.
Who is responsible for obtaining a new EIN?
This IRS requirement impacts the partnership that is providing K-1s to its partners.
To make this process of obtaining separate EINs for each IRA partner easier for both the asset sponsor and their IRA partners, Equity Doc Prep can help.
What is the process?
1
Complete the Engagement Document:
Specify the account(s) for which you need a unique EIN. If you have multiple accounts, we prefer you consolidate them into a single list for convenience.
2
Request to Investor:
Once we receive the engagement document, we will contact the investor to acknowledge the account change and provide them with an IRS SS4.
3
Client Approval and Signed SS4:
After the investor approves the changes and completes the SS4 form, Equity Trust will update the account records and provide the sponsor with the updated EIN.