In Morris v. Commissioner of Internal Revenue, the United States Tax Court sought an answer to “whether [the] petitioners failed to report during 2011 taxable distributions from an individual retirement account (IRA).” While the petitioners were under a belief that the money they obtained from their father’s estate would have no tax due on the IRA distribution, the court determined that they were still responsible for the payments. The court concluded that the petitioners failed to report $95,984 from an IRA distribution as part of their gross income for 2011 taxable distributions. While no taxes were due for a federal estate tax or a Michigan inheritance tax, the petitioners still owed taxes to the IRS.

See Morris v. Commissioner of Internal Revenue, T.C. Memo. 2015-82.

Posted by Aryane Garansi, Associate Editor, Wealth Strategies Journal