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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29969
Experience:  Taxes, Immigration, Labor Relations
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I asked a question 30 minutes ago, and someone name LEV is

Customer Question

I asked a question 30 minutes ago, and someone name LEV is working on it, but I still don't have an answer
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.
Hi and welcome to our site!
Please review the answer by following this link
Let me know if you need any clarification or help with other tax related issues.
Expert:  Lev replied 4 years ago.
The first question - why the IRS sent a letter?
Most likely because the IRS received a reporting from MLP informing the IRS about taxable income passed to partners.
The MLP should send such forms to the IRS and to partners.
If forms were received by you - you need to provide that information to the administrator of your IRA account.

There's no prohibition against holding MLPs in IRA or other qualified retirement accounts.
As long as MLPs are distributed interest and dividend income - there should not be any issues.
However - there may be complications with keeping an MLP in an IRA with other income types. If MLPs are passing business income - there is a risk of passing the threshold of $1,000 UBTI tax for the IRA to pay.
But since your income is from interest and dividends only - that is not an issue.
See for reference -