ShoeBox Taxes
Level 5

Sorry, I have to disagree vehemently. In this case, the client is accepting the bank's assessment regarding the taxability of the IRA. There is nothing unreasonable about accepting the assessment of the organization that holds the fricking asset.

The onus falls on the IRS to explain why it doesn't accept their assessment. A taxpayer should not be expected to have to explain why it accepts the bank's assessment. 

If the government is going to question ANYONE about how banks value their assets, they should question the banks, not taxpayers. 

Honestly, this is exactly what's wrong with this country. Government throwing its weight around, punishing "the little guy" for mistakes that big-wigs make. Pitchforks and torches, my friends. Choose your side wisely.