When unrelated business taxable income ("UBTI") is earned by a tax-exempt entity such as an IRA, and the total amount earned is $1,000 or more, the IRA must file Form 990-T, and any resultant taxes must be paid by the IRA.
Normally the filing of Form 990-T and the payment of the taxes is handled by the IRA custodian.
None of this is reported on your personal tax return. It is all handled within the IRA. No 1099-R is issued for these transactions.
Usually UBTI is earned by Limited Partnerships or Master Limited Partnerships that are held by your IRA. When an IRA owns an LP or MLP, it becomes a partner in the partnership. Hence it shares responsibility for the taxes due on the partnership's unrelated business income.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
