New client that has had K-1 from a partnership with net rental income and interest income, but in Part II of K-1 the IRA Custodian name and ID# is listed with the client's name and address. The type in box I1 is Nominee IRA. It is my understanding that this is income to the IRA, thus not taxable to client and does not go on 1040, however prior accountant (large firm) has been putting it on Schedule E for years...The partnership is commercial property investment firm. Is this accurate? TIA!
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@Fenway.cpa - stick around. We pick on each other constantly - with a lot of respect tho.
Sounds like you have some amended returns to do, and possibly one ASAP (2014's)