IRS written determination 201437032

Private letter rulings and published taxpayer determination letters. Native document type is retained separately; a determination letter is not labeled a private letter ruling. These taxpayer-specific releases cannot be used or cited as precedent under 26 USC 6110(k)(3); applicability and current legal force are not independently certified. Keep repeated UILC subjects attached to one actual numbered document.

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
201437032
TAX EXEMPT AND
GOVERNMENT ENTITIES
JUN 0 2 2014
DIVISION
U.I.L. 408.03-00
xxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxx
Legend:
Taxpayer A
= xxxxxxxxxxxxxx
IRA X
= xxxxxxxxxxxxxx
Company C
= xxxxxxxxxxxxx
Amount D
= xxxxxxxxxxxxx
Account F
= xxxxxxxxxxxxx
Dear xxxxxxxxxx:
This
letter is
in response to your request dated July 19, 2013, as supplemented
by correspondence dated November 17, 2013, and May 5, 2014, in which you
request a waiver of the 60 day rollover requirement contained in section
408(d)(3)
of the Internal Revenue Code (the "Code").
The following facts and representations have been submitted under penalty of
perjury in support of the ruling requested.
Taxpayer A represents that she received a distribution from IRA X totaling ·
Amount D. Taxpayer A asserts that her failure to accomplish a rollover within the
60-day period prescribed by section 408(d)(3)
of the Code was due to misleading
information provided by Company
C.
Taxpayer A had IRA X with Company C. On xxxxxxxxxxxxxxxx, Taxpayer A
requested a distribution from IRA X by way
of a check so that she could rollover
the entire amount into
an IRA at her local bank. Company C provided Taxpayer A

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201437032
with a distribution form which Taxpayer A signed and requested that the
distribution be made by check and sent to her current address. However, instead
of issuing a check, Company C opened Account F, a non-IRA account, with
Company
C.
Taxpayer A represents that the distribution form given her by Company C was
very confusing and misleading which she could not comprehend and did not
realize that Company C would open Account
F instead of issuing a check as she
requested. Amount D remains
in Account F with Company C and has not been
used for any other purpose.
Documentation submitted by Taxpayer A supports her assertion that Company C
provided misleading information that resulted
in a check not being issued to
Taxpayer A for Amount
D.
Based upon the facts and representations, you request a ruling that the Internal
Revenue Service waive the 60-day rollover requirement contained
in section
408(d)(3)
of the Code with respect to the distribution of Amount D.
Section 408( d)( 1) of the Code provides that, except as otherwise provided in
section 408(d), any amount paid or distributed out of an IRA shall be included in
gross income by the payee or distributee, as the case may be, in the manner
provided under section 72
of the Code.
Section 408(d)(3) of the Code defines and provides the rules applicable to IRA
rollovers.
Section
408(d)(3)(A)
of the Code provides that section 408(d)(1) of the Code
does not apply to any amount paid or distributed out
of an IRA to the individual
· for whose benefit the IRA is maintained if-
(i)
(ii)
the entire amount received (including money and any other property) is
paid into
an IRA for the benefit of such individual not later than the 60th
day after the day on which the individual received the payment or
distribution; or
the entire amount received (including money and any other property) is
paid into
an eligible retirement plan ~other than an IRA) for the benefit of
such individual not later than the 60t day after the date on which the
payment or distribution is received, except that the maximum amount
which may be paid into such
plan may not exceed the portion
of the
amount received which is includible
in gross income (determined without
regard to section 408(d)(3)).
Section 408(d)(3)(8)
of the Code provides that section 408(d)(3) does not apply
to any amount described in section 408(d)(3)(A)(i) received by an individual from

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201437032
an IRA if at any time during the 1-year period ending on the day of such receipt
such individual received any other amount described
in section 408(d)(3)(A)(i)
from an
IRA which was not included in gross income because of the application
of section 408(d)(3).
Section
408(d)(3)(0)
of the Code provides a similar 60-day rollover period for
partial rollovers.
Section 408(d)(3)(E)
of the Code provides that the rollover provisions of section
408(d) do not apply to any amount required to be distributed under section
408(a)(6).
Section
408(d)(3)(1)
of the Code provides that the Secretary may waive the 60-
day requirement under sections 408(d)(3)(A) and 408(d)(3)(D)
of the Code where
the
failure to waive such requirement would be against equity and good
conscience, including casualty, disaster, or other events beyond the reasonable
control
of the individual subject to such requirement. Only distributions that occur
after December 31,
2001, are eligible for the waiver under section 408(d)(3)(1)
of
the Code.·
Rev. Proc.
2003-16, 2003-4 I.R.
B. 359, provides that in determining whether to
grant a waiver
of the 60-day rollover requirement pursuant to section 408(d)(3)(1),
the Service will consider all relevant facts and circumstances, including: (1)
errors committed by a
financial institution; (2) inability to complete a rollover due
to death, disability, hospitalization, incarceration, restrictions imposed by a
foreign country or
postal error; (3) the use
of the amount distributed (for example,
in the case of payment by check, whether the check was cashed); and (4) the
time elapsed since the distribution occurred.
The information presented and documentation submitted by Taxpayer A is
consistent with her assertion that her failure to accomplish a timely rollover was
due to misleading information provided by Company
C.
Therefore, pursuant to section 408(d)(3)(1) of the Code, the Service hereby
waives the 60-day rollover requirement with respect to the distribution
of Amount
D from
IRA
X. Taxpayer A is granted a period of 60 days from the issuance of
this letter ruling to contribute Amount D into a rollover IRA. Provided all other
requirements
of Code section 408(d)(3), except the 60-day requirement, are met
with respect to such contribution, the contribution
of Amount D will be
considered a
rollover contribution within the meaning
of section 408(d)(3) of the
Code.
This
ruling does not authorize the rollover of amounts that are required to be
distributed by section
401 (a)(9) of the Code.

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201437032
No opinion is expressed as to the tax treatment of the transactions described
herein under the provisions of any other section
of either the Code or regulations,
which may be applicable thereto.
This ruling
is directed only to the taxpayer that requested it. Section 6110(k)(3) of
the Code provides that it may not be used or cited by others as precedent.
If you have any questions concerning this ruling, please contact xxxxxxxxxxx, at
xxxxxxxxxxxxxxx. All correspondence should be addressed to SE:T:EP:RA:T3.
Enclosures:
Deleted
copy of letter ruling
Notice 437
Sincerely yours,
d / ?.,~,~~. -
Laura B. Warshawsky, Manager
Employee Plans Technical Group 3