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To Pixy

I have several Limited Partnerships in IRA's that I recieve K-1's for. My IRA's are with a large Discount Broker and each year they send a letter indicating that I should send their Tax department a copy of the K-1s and they will evaluate them and then subtract a tax, if there is one from my IRA accounts. This tax comes into play when you have "reportable income if it generates $1,000 or more of Unrelated Business Income (UBI) in any one year". As I understand it my broker fills out a 990-T form on my behalf and sends it to the IRS with the payment. My broker just shows the tax payment in my account but has never sent me a copy of the 990-T even though I've asked for it.

My concern is that if and when I leave this broker how will I handle this tax ? I've asked several other brokers about it and although they would like to have my business they do not handle it like my current broker and they don't seem aware of the requirements. The tax is modest ($30 to $40) but I can see having to hire a CPA to evaluate the K-1 and fill out a 990_T (four page very complex looking form) and pay several hundred dollars to pay a $30 tax. I do my own taxes through Turbo Tax but there is nothing in Turbo Tax that addresses this.

Would appreciate your "take" and advice on this. I'm really surprised that the other brokers I've talked to don't seem knowledgeable and aware of this tax and how it's handled.
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