IRS written determination 201437033

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.

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TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
JUN 1 9 ?014
Uniform Issue List: 408.03-00
Legend:
Taxpayer A
=
Taxpayer B
=
IRAC
=
IRAD
=
Financial Institution E
=
Financial Institution F
=
Receiver G
=
Amount 1
=
Amount 2
=
Dear
201437033
This letter is in response to a request for a letter ruling dated February 9, 2014, in
which you request a waiver of the 60-day rollover requirement contained in section
408(d)(3) of the Internal Revenue Code ("Code").
The following facts and representations have been submitted under penalty
of perjury
in support of the ruling requested:
Taxpayer
A, and Taxpayer A's spouse, Taxpayer B represent that they received
distributions from
IRA C and IRA
D, totaling Amount 1 and Amount 2, respectively.
Taxpayer A and Taxpayer B assert that their failure to accomplish rollovers within the
60-day period prescribed by section 408(d)(3)
of the Code was due to the failure of
Receiver G of Financial Institution F to identify these amounts as IRA distributions.

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201437033
Taxpayer A maintained IRA C and Taxpayer B maintained IRA D, individual retirement
accounts (IRAs) with Financial Institution
E, under section 408(a) of the Code. Taxpayer
A and Taxpayer B made both IRA and non-IRA investments
in Financial Institution F. In
2009, the Securities and Exchange Commission determined that Financial Institution F
was a Ponzi scheme and froze all assets of Financial Institution F. Receiver G was
appointed receiver over
Financial Institution
F.
In 2012, Receiver G of Financial Institution F made several distributions to Taxpayer A
and Taxpayer
B. The distributions included refunds of IRA money and refunds of non
IRA money. Receiver G failed
to identify the distributions as refunds of IRA assets.
After the 60-day rollover period, Taxpayer A and Taxpayer B received Forms 1099-R
indicating that Amount 1 for Taxpayer A and Amount 2 for Taxpayer
B, were IRA
distributions.
Based on the above facts and representations, you request that the Service waive the
60-day rollover requirement contained
in section 408(d)(3) of the Code with respect to
the distributions
of Amount 1 and Amount 2.
Section 408(d)(1) of the Code provides that, except as otherwise provided in section
408(d)
of the Code, 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 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) 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 receives the payment or distribution; or
(ii) 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
60th 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)
of the Code).
Section 408(d)(3)(B)
of the Code provides that section 408(d)(3) of the Code does not
apply to any amount described
in section 408(d)(3)(A)(i) of the Code received by an
individual from
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)
of the Code from an IRA which was not includible in gross income
because
of the application of section 408(d)(3) of the Code.

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201437033
Section 408(d)(3)(D) 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 or good conscience,
including casualty, disaster, or other events beyond the reasonable control
of the
individual subject to such requirement.
Only distributions that occurred 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.S. 359 (January 27, 2003) provides that
in determining
whether to grant a waiver of the 60-day rollover requirement pursuant to section
408(d)(3)(1)
of the Code, the Service will consider all relevant facts and circumstances,
including: (1) errors committed by a financial institution; (2)
inabi1ity 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 the documentation submitted by Taxpayer A and
Taxpayer 8
is consistent with their assertion that their failure to accomplish a timely
rollover
of Amount 1 and Amount 2 was due to the failure of Receiver G of Financial
Institution F to identify the amounts as relating to Taxpayer A's and Taxpayer B's
IRAs.
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 1 from IRA C
and Amount 2 from IRA D. Taxpayer A and Taxpayer 8 are granted a period of 60
days from the issuance
of this letter ruling to contribute Amount 1 and Amount 2 into
rollover IRAs. Provided all other requirements
of section 408(d)(3) of the Code,
except the
60-day requirement, are met with respect to such contributions, the
contributions will be considered rollover
contributions within the meaning
of section
408(d)(3)
of the Code.
No opinion is expressed as to the tax treatment of the transaction described herein
under the provisions
of any other section of either the Code or regulations which may
be applicable thereto.
This ruling does not authorize the rollover
of amounts that are required to be
distributed by section
401 (a)(9) of the Code.
This letter is directed only to the taxpayer who requested
it. Section 611 O(k)(3) of the
Code provides that it may not
be used or cited as precedent.

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201437033
If you wish to inquire about this ruling, please contact
(I. D.# ), SE:T:EP:RA:T1, at
Enclosures:
Deleted Copy
of this Letter
Notice
of Intention to Disclose, Notice 437
Sincerely yours,
~~
Carlton A. Watkins, Manager
Employee Plans Technical Group 1