I don't know, but I'm sure the argument is that the initial transaction can't be examined any more, and the subsequent transactions were all perfectly valid. I

I don't know, but I'm sure the argument is that the initial transaction can't be examined any more, and the subsequent transactions were all perfectly valid. In my opinion, the entire IRA should be considered tainted and have taxes owed on all gains since 1999. There could also be the argument that this constitutes tax fraud (depending on whether or not the $0.001 price was significantly under the market price that investors were offered at the same time), which as far as I know means the statute of limitations doesn't apply.