A self-directed IRA places the investor in charge of making all investment decisions and allows a greater opportunity for asset diversification outside of the traditional stocks, bonds and mutual funds, such as real estate and private tax liens. All securities and investments in a self-directed IRA are held in an account administered by a custodian or trustee. According to IRA expert, Natalie Choate, the IRS is on a “warpath” against self-directed IRAs and has succeeded in disqualifying business-owning IRAs for routine business activities such as compensating the owner for services. Also, the IRS has eliminated an IRA owner’s personal guarantee of loans to an IRA-owned business. (Natalie’s Notes, Vol. 17, No. 1. Summer 2016). Those who have or are considering a self-directed IRA need to be very careful as the IRS has them in its sights.