Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
No. All transactions within the IRA are exempt from current taxation. Only upon withdrawal does the regular tax arise, unless of course you're dealing with a Roth IRA which may mean no tax if the other Roth IRA rules are met.
Does this mean that upon withdrawl I WILL be held liable for capitol gains taxes which may have been incurred, for example 10 years earlier?
NO. Not at all. You'll never pay capital gains tax on the transaction. You'll simply pay any tax due on the withdrawal of funds from the IRA.