I’ve recently received numerous e-mails from clients regarding an article written on Sovereignman.com. In the article the author states that the IRS is no longer issuing Tax IDs to IRA/LLCs. The article references word of mouth information from an attorney although the attorney’s name is not listed nor does the article reference the law, case, IRS pronouncement, or instance where this Tax ID denial has occured.
Since this article was published in August and since I’ve been asked so many times as to the authenticity of it I figured that I would respond to the rumors and let everyone know that there has been no change in the IRA/LLC structure in the Courts, in law, or in practice with the IRS. In fact, since the Sovereignman article was published in August and as early as yesterday we have been obtaining Tax ID’s for IRA/LLCs and our Tax ID application makes it very clear that an IRA is the owner of the LLC. It almost goes without saying, but don’t believe everything you read on the web and only seek tax and legal advice from those who are licensed to offer it.
If you are curious as to some of the recent cases and law on the IRA/LLC structure, please refer to my 2012 IRA/LLC legal update which can be found here.
By: Mathew Sorensen