127 T.C. No. 1 UNITED STATES TAX COURT CHARLOTTE AND CHARLES T. GEE, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 8755-05. Filed July 24, 2006. P rolled over a distribution from her deceased husband’s individual retirement account (IRA) into her separate IRA upon her husband’s death. Four years later, P received a distribution from her IRA. She claims that the distribution was an amount received from her deceased husband’s IRA and therefore exempt from the 10-percent additional tax on early distributions under sec. 72(t)(2)(A)(ii), I.R.C., as a distribution to a beneficiary upon a decedent’s death. 1. Held: P received an early distribution from her own IRA subject to the sec. 72(t), I.R.C., additional tax. The amount received from P’s deceased husband’s IRA lost its character as a distribution made to a beneficiary upon a decedent’s death once P transferred the funds to her separately owned IRA. 2. Held, further, Ps are not liable for the accuracy-related penalty under sec. 6662(a), I.R.C.Page: 1 2 3 4 5 6 7 8 9 Next
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