Essner v. Commissioner, T.C. Memo 2020-23: Distributions From Inherited IRA Considered Taxable Income

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. 

See full opinion by clicking Essner v. Commissioner, T.C. Memo 2020-23: Distributions From Inherited IRA Considered Taxable Income.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s