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(USGovernment-News.Com, May 29, 2012 ) Austin, TX -- Every year the IRS publishes what is known as ‘The Dirty Dozen’ – a list of 12 of the most common tax scams that people need to watch out for. Typically, common schemes such as phishing and identify theft are included. However, one well-known media outlet has incorrectly reported that checkbook IRA accounts have been featured within the “list of shame”.
“Whoever reported that the IRA LLC had been featured in the IRS’s Dirty Dozen has obviously not even taken the time to actually read the list!” says The IRA LLC Partner. “If you go to the IRS website (http://www.irs.gov/newsroom/article/0,,id=254383,00.html) then you can clearly see that the IRA LLC is not present within the IRS listings as the press release incorrectly claimed.”
The IRA LLC is in fact will never ever appear in these IRS listings unless the laws regulating IRAs completely change. The Swanson Case set a precedent for entities owned by IRAs and controlled by IRA participants. In this case, the checkbook IRA type structure held up in the tax courts against harsh Government scrutiny. Further more, the IRS lost the case and were ordered to pay the defendants Court costs and legal fees. More than a decade later there has been IRS field service advisory opinion letters, DOL Private Letter rulings and other court cases proving the legality of checkbook IRAs.
The question therefore arises at why others would feel the need to smear the name of the checkbook IRA. According to The IRA LLC Partner, it is because some financial planners see the checkbook IRA as competition to their business.
“Some limited minded financial planners may think that for every checkbook IRA there is one less person that they can do business with. But this is pure misinformation. In fact, if their products were worth diversifying in the first place, you could allocate a portion of your funds and purchase their securities.”
Likewise, a portion of this misinformation can come from misinformed account managers that work for certain IRA custodians.
“Some IRA custodians are adding to the online misinformation surrounding checkbook IRA accounts. Whilst a checkbook IRA still requires a custodian, the increased amount of admin that you are able to handle yourself means less custodian fees are paid,” said The IRA LLC Partner.
The IRA LLC Partner are self directed IRA specialists who work to give account holders more flexibility over their retirement funds. The company structures checkbook IRA accounts to enable individuals to diversify their investment options. For more information on gaining checkbook writing privileges for a retirement fund, visit IRALLCPartner.com.
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