Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Audits Looming For Checkbook IRAs? Pending Implementation of More Detailed IRA Reporting Forces Checkbook IRA Holders To Consider Increased Audit Risk
  • USA - English


News provided by

New Direction IRA

Oct 07, 2014, 09:00 ET

Share this article

Share toX

Share this article

Share toX

New Direction IRA responds to IRS reporting changes that may affect Checkbook IRAs.
New Direction IRA responds to IRS reporting changes that may affect Checkbook IRAs.

The IRS is concerned about the potential for abuse, but, since Checkbook IRAs seldom file annual tax returns, the IRS hasn’t had an effective means to locate and review them. That is about to change!

Post this

Louisville, CO (PRWEB) October 07, 2014 -- Impending changes to IRS Form 5498, which incorporate information on asset classes owned by IRAs, will be mandatory for 2015 and optional for 2014. New Direction IRA believes this additional reporting information, soon to be in the IRS’s hands (or computers), may have a significant impact on IRA holders who have formed entities commonly called Checkbook IRAs, as they will be highlighted on the new form. Checkbook IRA owners must soon decide whether to keep the Checkbook IRA and face additional IRS scrutiny or dissolve the entity prior to the start of the new reporting.

The Checkbook IRA – basically a single-member entity owned by an IRA and managed by the IRA holder – is often promoted as a way for an IRA holder to have more immediate control over her or his retirement assets in the form of faster cash disbursal as well as saving on IRA provider fees. Using the Checkbook IRA idea can seem like an easy choice especially if the account holder only hears about the benefits; however, Checkbook IRAs come with attendant complexity for the account holder in terms of administration and following IRS rules.

The IRS is aware that the account-holder control created by this structure has resulted in prohibited transactions, both intentional and unintentional. Since Checkbook IRAs seldom file annual tax returns, the IRS hasn’t had an effective means to locate and review them regardless of their concern over potential abuse. That is about to change! With the new 5498 changes, LLCs, such as are used for a Checkbook IRA, will be broken out separately on the report and identified as private LLCs.

In addition, recent court cases have revealed a new focus on the part of the IRS when it comes to those attempting to stretch the rules for IRAs and or avoid the rules entirely. Taxes and penalties assessed by the IRS for violations can be significant, over $500,000 in one recent case (see PEEK v. COMMISSIONER140 T.C. No. 12, (May 9, 2013)). The courts have focused so far on prohibited transactions. The rules are very broadly laid out in Code Section 4975 and include limitations on actions such as providing services to your IRA, providing credit to your IRA and personal use of your IRA’s assets.

Recent IRS silence on questions such as “what does providing services mean?” and “where is the line between providing credit to my IRA and providing credit to my IRA’s asset”, has given Checkbook IRA owners and companies promoting them potentially false assurance that the IRS is not concerned about that fine a detail. The courts, however, are enforcing the broadest interpretation, basically saying that unless the code specifically allows it, for example, provision of credit to an asset owned by the IRA, then it is prohibited.

New Direction IRA, a leading self-directed IRA provider, has educational materials, webinars, and experts on hand who can provide explanation of the potential IRS issues and concerns and how they relate to Checkbook IRAs

Anticipating more IRS focus on Checkbook IRAs, New Direction IRA has developed an alternative approach for account holders who would rather avoid additional IRS scrutiny. New Direction’s proprietary client portal, myDirection.com, provides IRA owners much of the speed and convenience that they sought by choosing a Checkbook IRA without the added administrative burden and possible risk that comes along with that structure.

With myDirection.com the client may electronically:

  • Initiate new transactions,
  • Initiate bill payments directly at no cost,
  • Initiate and receive electronic payments from tenants, borrowers and others,
  • Open new accounts, initiate transfers and some distributions from accounts,
  • Review past transactions, bill payments, and other cash movements,
  • Initiate HSA distributions,
  • Request IRA distributions,

All myDirection.com users automatically have

  • Full annual account record keeping,
  • FDIC-insured cash accounts,
  • Daily account reconciliation,
  • Immediate access to cash available in the account.
  • Income and expenses categorized by asset,
  • Access to electronic payments (ACH), paper checks, and out-going wire services.
  • Online access to account balances, activity and information, 24/7
  • Access to incoming ACH, wire, electronic and paper checking services for payments into the account.

IRS changes to form 5498 create a decision point for Checkbook IRA holders. New account technology employed by New Direction IRA may provide a way to keep the operation of your IRA fast and convenient without exposing it to unwanted IRS scrutiny.

-----
New Direction IRA is a trusted provider of investor education and record keeping services for self-directed IRA and precious metals IRA holders. Since its inception in 2003, New Direction IRA has been at the forefront of the self-directed retirement investment market. The company enables individual investors to take control of and diversify their tax-advantaged retirement funds using alternative asset opportunities such as real estate, precious metals, LLCs, notes and lending, and more. Headquartered in Louisville, Colorado, New Direction IRA administers more than $850M in assets on behalf of over 8,400 account holders. Visit the website at http://www.newdirectionira.com.

DISCLAIMER: New Direction IRA, Inc. does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought. CIRCULAR 230 NOTICE: As required by U.S. Treasury rules, we inform you that if any Federal tax advice is contained in this email, including attachments (in spite of our best efforts not to provide any tax advice), it is not intended or written to be used, and cannot be used, by any person (1) for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service, or (2) to promote, market, or recommend to another party any matter addressed herein. CONFIDENTIALITY: This email message and any attachments are intended solely for the use of the addressee(s) and may be confidential. Any unauthorized review, use, disclosure, copying or distribution is expressly prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message and any attachments.

Clay Malcolm, New Direction IRA, http://newdirectionira.com, +1 303-546-7930 Ext: 113, [email protected]

Modal title

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.