Peek v. Comm'r
United States Tax Court
In 2001 Ps established traditional IRAs. Ps formed FP Corp. and directed their new IRAs to use rolled-over cash to purchase 100% of FP Corp.'s newly issued stock. Ps used FP Corp. to acquire the assets of AFS Corp. Ps personally guaranteed loans of FP Corp. that arose out of the asset purchase. In 2003 and 2004 Ps undertook to roll over the FP Corp. stock from their traditional IRAs to Roth IRAs, including in Ps' income the value of the stock rolled over in those years.
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In 2001 Ps established traditional IRAs. Ps formed FP Corp. and directed their new IRAs to use rolled-over cash to purchase 100% of FP Corp.'s newly issued stock. Ps used FP Corp. to acquire the assets of AFS Corp. Ps personally guaranteed loans of FP Corp. that arose out of the asset purchase. In 2003 and 2004 Ps undertook to roll over the FP Corp. stock from their traditional IRAs to Roth IRAs, including in Ps' income the value of the stock rolled over in those years. In 2006 after the FP Corp. stock had significantly appreciated in value, Ps directed their Roth IRAs to sell all of the FP…
1Opinion of the Court
GUSTAFSON, Judge:
Pursuant to section 6212,1 the Internal Revenue Service (“IRS”) issued statutory notices of deficiency to petitioners Lawrence F. Peek and Sara L. Peek on December 9, 2010, and to petitioners Darrell G. Fleck and Kimberly J. Fleck on December 14, 2010, determining the following deficiencies in income tax and accuracy-related penalties under section 6662(a) for tax years 2006 and 2007:
Taxpayers Year Deficiency Penalty sec. 6662(a)
Peek 2006 $223,650 $44,730.00
2007 1,399 279.80
Fleck 2006 243,229 48,645.80
2007 4,948 989.60
The issues for decision in these consolidated cases are:…
2Cases cited9 opinions
- HIGBEE v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 2001
- Neely v. CommissionerUnited States Tax Court · 1985
- Commissioner v. Keystone Consolidated Industries, Inc.Supreme Court of the United States · 1993
- Borchers v. CommissionerUnited States Tax Court · 1990
- Richard J. Borchers Jane E. Borchers v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1991
4 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Thiessen v. Comm'rUnited States Tax Court · 2016
- Terry Ellis v. Commissioner of IRSCourt of Appeals for the Eighth Circuit · 2015
- Fleck v. CommissionerCourt of Appeals for the Tenth Circuit · 2014
- Lawrence F. & Sara L. Peek v. CommissionerUnited States Tax Court · 2013
- Peek v. Comm'rUnited States Tax Court · 2013
1 more not listed; retrieve them via the Exa API.