Brett John Ball v. Commissioner

T.C. Memo. 2020-152

UNITED STATES TAX COURT BRETT JOHN BALL, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 22833-14. Filed November 10, 2020. P caused $209,600 to be distributed from his SEP-IRA to an LLC that he controlled. The LLC lent the received amount in the name of the SEP-IRA and, eventually, contributed the amounts repaid on the loans (plus interest) to the SEP-IRA. Held: Because P had unfettered control over the distributions, the distributions were an item of gross income to P for the year distributed. Held, further, because P was not 59-1/2 years of age in…