Trustee Reporting of Prohibited Transactions

[lalaland]

Is anyone aware of an affirmative duty by an IRA trustee/custodian to investigate prohibited transactions it believes may exist? I ask in the context of self-directed IRA trustee who specializes in exotic assets.

[mbozek]

Need to read the agreement with the IRA custodian. Most custodians who handle alternative investment such as RE, currency, private partnership interests, etc disclaim any responsibility for reviewing or reporting PTs and make it a condition of the contract that the IRA owner is solely responsible for complying with the PT rules and paying taxes if the rules are violated.