Mazzei v. Commissioner, 150 TC No. 7 (Mar. 5, 2018): Family Members Liable for Tax on Money Rerouted Through FSC to Roth IRAs

In Celia Mazzei, et al. v. Commissioner, taxpayers redirected monies from their family business through a foreign sales corporation based in Bermuda to Roth IRAs specifically established for this purpose. The IRS determined these family members were liable for taxes on the rerouted funds. The Tax Court agreed with the IRS and held that the taxpayers owed excise tax for their excessive contributions to the Roth IRAs.

See Lewis J. Saret, Mazzei v. Commissioner, 150 TC No. 7 (Mar. 5, 2018): Family Members Liable for Tax on Money Rerouted Through FSC to Roth IRAs, Wealth Strategies Journal, March 6, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.