2015 Reporting Requirements for IRAs

Beginning in 2015, the IRS is requiring additional mandatory reporting of values within IRAs and Roth IRAs. The assets that will be requiring additional reporting are the hard-to-value assets, or assets without a readily available fair market value (FMV).

These new reporting requirements indicate that the IRS is looking more closely at IRAs that hold hard-to-value assets, especially in years that a distribution or deemed distribution have been made. If the assets were undervalued at the time of distribution, a taxpayer could be subject to a 50 percent penalty for the undervaluation and underpayment of tax. The valuation of the assets also relates to the required minimum distributions from the IRAs. The IRS may also be using this information as the basis for an audit to determine whether prohibited transactions have occurred by the IRA holding assets that are not allowed to be held in an IRA.

Source: UHY


 

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