Partnership income received by an IRA

Correct.  It's never taxable per se, but loses its identity in the IRA, and  ultimately will become part of a distribution.

Thanks Archie.

Does the K-1 still need to be reported with the taxpayer's return?

Does the IRA file an income tax return? No.

When an IRA receives interest and dividend income, does the TP include it in his 1040? No.

Well... let's hang on for a minute.

Never taxable-  not correct.     IRA never files a tax return--- not correct.

If an IRA invests in a partnership (or similar LLC), it is possible for it to create UBIT (Unrelated Business Income Tax).  If UBI is more than $1,000.00, then the IRA must file a tax return - Form 990.  If tax is owed the IRA pays the tax and the cost of preparing the return.  The beneficiary cannot pay or it is considered a contribution.

I have only recently started getting into this as IRA's (especially self-directed) are getting into MLP's (Master Limited Partnerships).

If the IRA only invests in stocks, bonds, mutual funds, etc then this is not an issue.

I think most of us are aware of the UBIT issue for IRAs. But in 35 years of practice, I've never had one anywhere near large enough to require a return.  If we wax eloquent on every arcane exception to every answer on this list, we'll never have time to do our own work.

Blah, blah. blah, UBIT. Honestly, most questions are about 1040's.