IRS AGAIN EXTENDS IRA ROLLOVER PERIOD IN SPECIFIC INSTANCES

The IRS has again extended the IRA 60-day rollover period in cases of error committed by a financial institution. The ruling was made addressing case PLR 200825054, where the taxpayer received a distribution from her IRA maintained at Bank B. Within 60 days the taxpayer sent the check to Bank A with written instructions to deposit the amount in her IRA at Bank A. However, Bank A erroneously posted the amount to the taxpayer’s non-IRA account. The error was not noticed until the taxpayer was filing her income tax return.

The IRS held that the information and documentation submitted by the taxpayer was consistent with her assertion that her failure to accomplish the rollover within the required 60-day period was due to an error by Bank A. Therefore, pursuant to section 408(d)(3)(I), the IRS waived the 60-day rollover requirement and granted a period of 60-days from the issuance of the letter ruling to rollover the disputed amount.

If you are looking for tax guidance in a similar situation, please contact your local CB&H office and ask to speak to a tax professional.

FOR MORE INFORMATION, PLEASE CONTACT:
Gil Weiner
gweiner@cbh.com
404.733.3214

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