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.
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