How to get EIN for SDIRA, issue 1099-misc for contractor?

[Erik Kubec]

Hello BP'ers,

This is a follow up post to an earlier related post:

http://www.biggerpockets.com/forums/51/topics/81186-1099-on-self-directed-ira-for-a-contractor

How do I obtain an EIN for an SDIRA (not an LLC)?

My contractor is really pressing me for a 1099, although I understand that it is possible that I don't need to issue one.

So, I have 2 options: obtain the EIN for the SDIRA (which I can't find how to do on google) or tell the contractor I won't be doing it.

If I choose the latter, does the contractor merely report that they received income but they don't say where? That would seem problematic from a 'money laundering' perspective. If the contractor puts my name, then it would imply a 'prohibited transaction'. I could tell him to put "Equity Trust Company FBO {yadda yadda yadda)"

I guess my concern in telling him no (beyond I generally like to keep my good contractors happy) is that there will be unmatching income/expense in the IRS' eyes: somebody is reporting they got paid, but there isn't a matching somebody reporting they paid out.

Thoughts?

[Erik Kubec]

Call Equity Trust Company, they can't give tax or legal advice.

I am starting to think that since the SDIRA is not a business, then I don't need to issue a 1099 - misc. I don't personally issue a 1099 when I hire a contractor to work on my own house.