IRS Comes Calling for Coin Investors
In McNulty v. Commissioner, 157 T.C. No. 10 (Nov. 18, 2021), the McNultys decided to establish a self-directed IRA and invest the IRA assets in gold and silver American Eagle coins. Donna hired a third-party company, Check Book LLC (Check Book), that advertised the ability to own such American Eagle coins at home without tax consequence or penalties.
As for Donna, her physical possession of IRA assets as the IRA’s owner resulted in a taxable distribution, irrespective of her status as Green Hill LLC’s manager or Green Hill LLC’s ownership of the assets.