Money Moved From Foreign Entity to IRAs Shielded From Excise Tax

June 2, 2021, 7:08 PM

Three individuals who channeled money into their retirement accounts through a foreign sales corporation aren’t liable for excise taxes on the retirement account contributions, a federal appeals court ruled.

The Wednesday decision from a three-judge panel at the U.S. Court of Appeals for the Ninth Circuit reversed a ruling from the U.S. Tax Court, which held in 2018 that Angelo Mazzei, Mary Mazzei , and Celia Mazzei were liable for excise taxes for making excess contributions to their Roth Individual Retirement Accounts. Ninth Circuit Judge Daniel P. Collins wrote that it isn’t his court’s role to save the ...

To read the full article log in.

Learn more about a Bloomberg Tax subscription.