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LLC IRA - is IRS really starting to pound upon them?
In a conversation with a (local) LLC IRA facilitator I was told that IRS started to look into LLC IRAs cause many people violate the rules and no one is watching them. This particular facilitator structures the LLC so that it is co-managed by both the IRA owner and them. So technically there no real checkbook control, they cut the check and forward when needed. They however allow ACH transfers for online tax lien auction participating. Custodian charges an annual fee of 1% of the balance. Facilitator charges $2k to setup the LLC. Seems (very) expensive to me.
How true are the claims about potential IRS audits? (I want to buy tax liens).
P.S. I get different answers as to who is allowed to pay for administration and transaction fees? Some say it needs to be paid only by the LLC, some say the owner may pay them. Which one is it????