FORM PTK1 interest, dividends, and return on capital in retirement account

[hkh]

this question is follow up to on asked yesterday. to be clear I am not asking about UBTI i am aware of rules and process for unrelated business taxable income.

i just received notice CP2000 from IRS indicating i owe additional taxes for Interest, dividends, and return on capital from Master Limited Partnerships i hold in my IRA and ROTH. is this income taxable in a retirement account?

[Carl]

Is box I2 on your K-1 checked, and did you indicate so in the program?

Now in the program you can easily misread that as box 12 (twelve) when it reads I2 (letter "eye" followed by the digit "two")  That box needs to be checked in order for it not to be taxable, unless you actually took out funds in any form from the MLP.

[Carl]

I just caught your reference to "PTK-1". Is this a state return form maybe? For the partnership on the federal side, I'd expect it to be "Schedule K-1 (Form 1065)"

[hkh]

thanks for reply. No this is federal return. on the CP2000 i received from IRS they reference PTK1 as third party information they receive from MLP's i hold in my retirement accounts. if i was required to file this information it would be reported on schedule K as you indicated. so my confusion is as follows;

i guess the MLP's are required to send IRS form PTKs. i would assume on this from they also provide account number that income was paid to? DOES ANYONE KNOW IF THIS IS CORRECT?

if correct from my 2016 return IRS already know account Numbers of my IRA and ROTH form 1099r filed with return. So it seems like simple automated computer cross check to avoid nuisance of me having to deal with this?

If anyone can provide further info please help. before i reply to them i want to understand the situation better.

thanks

[hkh]

looking at return filed via turbo tax there is no form K. this income it in IRA and ROTH. from what i understand there is no requirement for form K in retirement accounts unless UBTI is greater than $1,000. and if it it the brokerage holding the account is required to report that. am i correct? also when doing return turbo tax did not prompt for anything related to schedule k

[Zofiel]

Any update on this? I also received a CP-2000 but I cant find any documents sent to me.. how do i go about my route???

[DaveF1006]

To clarify, do you have a K1 for the tax year the CP-2000 is referencing?  If so, check to see if Box 12 is checked as Carl suggest in his post. 

Also, is your CP 2000 in reference to form PTK1 or for some other reason?

@Zofiel 

[Zofiel]

I Didn't receive any K-1 or find documents from any of my investments neither 401k, IRA, Roth. I even check the transaction history just to see. It just states form PTK-1 like any other 1099-B.