IRS Form 990-T is used by organizations, exempt businesses, and self-directed IRA account holders to report investment income to the IRS, such as unrelated business taxable income (UBTI) or unrelated debt-financed income (UDFI). Form 990-T only applies to earned income over $1,000.00 in any given year. If you have any questions or have received a Form K-1 from your investment sponsor, please consult with your investment sponsor or tax professional to determine if you are required to file Form 990-T.
Instructions for Filing and Paying Form 990-T
Step One: Apply for EIN and File Form 990-T
If you are required to file Form 990-T. you must apply for and utilize an employer identification number (“EIN”). Do not use STRATA’s TIN or your social security number.
- Obtain an EIN for your IRA by filing IRS Form SS-4. This EIN for your IRA must be listed on Form 990-T when filed.
- Complete Form 990-T and submit it electronically to the IRS along with IRS Form 8879-EO.
Step Two: Request Payment from Your STRATA IRA
- Complete STRATA’s Expense Payment Authorization form so that we can remit your tax payment. You must attach a copy of the filed Forms 990-T and 8879-EO with the request to STRATA.
As a custodian for self-directed IRAs, STRATA does not file IRS Form 990-T nor advise on or calculate UBTI or UDFI. STRATA does not provide investment, legal, or tax advice in any manner. Individuals should consult with their investment, legal, or tax professionals for such services.
