The problem, though, is that right before the taxpayer repaid the $$65,000$ to his traditional IRA account, he took $$65,000$ out of a different IRA account.$$ Then, just before the $60-$day period for that withdrawal expired, his wife took $$65,000$ out of her traditional IRA, with a $$65,000$ repayment to the taxpayer$$s second IRA account taking place just days later.$$ Eventually, the taxpayer repaid the wife$$s IRA withdrawal and took the position that all of the transactions were tax$-$free IRA rollovers.$$ The IRS disagreed, arguing in part that the nested withdrawals and repayments didn$$t line up the way the taxpayer contended.