How do I make a 990-T payment through AET?

When your Self-Directed IRA (SDIRA) generates Unrelated Business Income Tax (UBIT) or Unrelated Debt-Financed Income (UDFI), you will need to file IRS Form 990-T to report the tax liability. To ensure compliance, you must make the payment for any tax owed through your SDIRA. American Estate & Trust (AET) allows you to make your 990-T payment through a Direction of Investment (DOI) request.

Steps to Make a 990-T Payment via DOI:

1. Log in to the AET Online Portal
   Access your AET account by logging into the online portal with your username and password.

2. Navigate to the "Direction of Investment (DOI)" Section
   On the left-hand side of the portal, click on the "Directions of Investment" (DOI) option.

3. Submit a New DOI Request
   Select the option to create a new DOI. Specify that the payment is for the 990-T tax and provide all relevant details in the request form. Make sure you indicate that this is a payment for UBIT or UDFI tax liability.

4. Provide Supporting Documentation
   Attach any necessary documentation related to the 990-T payment, such as the completed IRS Form 990-T or a copy of your tax calculation. This will ensure that the payment request is properly processed.

5. Review Your Submission
   Carefully review all the information you have entered before submitting the DOI. Double-check that the amount matches your 990-T tax liability and that all supporting documents are included.

6. Click "Submit" to Finalize
   Once everything is reviewed and correct, click the "Submit" button to process your DOI request. AET will review the request and initiate the payment of the 990-T tax on your behalf.

7. Payment Processing
   AET will facilitate the payment of your 990-T tax liability from your SDIRA. Payments will be made directly from the available funds in your account.

Important Notes:

• Filing Your Own 990-T: AET does not file the 990-T form on your behalf. You are responsible for ensuring that your 990-T form is correctly completed and submitted to the IRS.

• Required Funds: Ensure that your SDIRA has sufficient funds to cover the tax payment. If additional funds are needed, consider making a contribution or transfer into your IRA before submitting the DOI.

• Status Monitoring: Since 990-T payments are not processed automatically, it is recommended that you keep track of the status of your DOI request via the online portal. Your DOI may encounter one of the following statuses:

  • On Hold for Corrections: If there are any issues or errors with the information you submitted, your DOI may be placed on hold for corrections. You will need to address the corrections and resubmit the DOI.

  • On Hold for Funds: If your account does not have enough available funds to cover the 990-T payment, your DOI request may be placed on hold until sufficient funds are deposited. Make sure to check your account balance and ensure there are enough funds before submitting the DOI request.

  • On Hold for Account Issues: If there are any account-specific issues (such as restrictions or compliance concerns), your DOI may be placed on hold for resolution. Ensure your account is in good standing and that all required documentation is up to date to avoid delays. 

  • Cancelled: If you cancel the DOI request or if there is a need to cancel the request for any reason, it will be marked as cancelled.

  • Compliance Review: If the DOI requires additional compliance checks (for example, confirming sufficient funds or verifying asset details), it will enter the compliance review status.

  • Rejected for Compliance: If your DOI request does not meet compliance requirements (for example, missing documentation or incorrect details), it will be rejected. You will need to correct the issues and resubmit the request.

  • Approved: If all information is correct and there are no issues with your DOI request, the payment will be approved and processed by AET.

  • Completed: Once the DOI request has been successfully processed, the status will change to "Completed," and the payment will be finalized.

• Deadline: Make sure to submit your DOI and make the payment by the required deadline to avoid penalties or interest on overdue taxes.

Conclusion:

Making a 990-T payment through AET is a straightforward process when you submit the payment request via a Direction of Investment (DOI). However, since these payments are not processed automatically, it’s essential to monitor the status of your DOI request in the online portal. Your DOI may encounter various statuses such as "On Hold for Corrections", "On Hold for Funds", or others depending on the situation. For more information, consult with a tax professional to ensure proper tax filing and compliance. For questions regarding the status, or notes, placed in an open request please contact Support for assistance.