J
JHaydenEA
Facts:
Divorced Dad is terminally ill;
Dad's only asset is a 300K IRA (zero basis);
In January 2003, he transfer IRA to Roth IRA (with no
witholding), naming his two (adult) children as
beneficiaries;
Dad dies in September 2003, and children receive the money
tax free;
The children have dad's 1099R showing the 300K IRA
distribution but have no desire (or obligation?) to have a
tax return prepared;
How does IRS collect their tax money?
Jim Hayden EA
Divorced Dad is terminally ill;
Dad's only asset is a 300K IRA (zero basis);
In January 2003, he transfer IRA to Roth IRA (with no
witholding), naming his two (adult) children as
beneficiaries;
Dad dies in September 2003, and children receive the money
tax free;
The children have dad's 1099R showing the 300K IRA
distribution but have no desire (or obligation?) to have a
tax return prepared;
How does IRS collect their tax money?
Jim Hayden EA