Taxable Distribution

By: Derek Hawkins//July 6, 2017//

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7^th Circuit Court of Appeals

Case Name: Raymond S. McGaugh v. Commissioner of Internal Revenue

Case No.: 16-2987

Officials: BAUER and WILLIAMS, Circuit Judges, and DEGUILIO, District Judge

Focus: Taxable Distribution

This appeal from the Tax Court addresses whether a taxable distribution occurs where an individual directs his IRA custodian to wire funds directly from his IRA to purchase securities, but his custodian does not accept the resulting share certificate. For the reasons that follow, we conclude that the petitioner was never in actual or constructive receipt of funds from his IRA. Accordingly, we affirm the judgment of the Tax Court.

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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