The Tax Court held that taxpayer’s IRA distributions were taxable income for two tax years at issue.
Taxpayer inherited the IRA from his mother and received two separate distributions during the two tax years at issue, which he did not report because he did not believe he owed tax on the distribution.
At trial, taxpayer asserted that part of each distribution was not taxable because it represented his father’s original investment, but was unable to prove this assertion. However, the taxpayer was unable to substantiate this contention.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.