GAO to audit IRA Valuations

Tax Notes Today is reporting that the director of tax issues for the GAO announced on C Span that the GAO has accepted a formal request to look at how effective the IRS is in enforcing the IRA rules.

I think the GAO is going to be in for a big surprise.

More than likely that will lead to the aggressive self directed IRA owner being hit with a big surprise as well.  By the way, the IRS has convened a working group to study compliance and enforcement strategies.

Bottom line, if you are using a self directed IRA you better make sure you are doing things right.  Once you’ve engaged in a prohibited transaction your account is distributed.  You can’t unring the bell.