IRS written determination 201440031

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
TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
Uniform Issue List: 408.03-00
Legend:
Taxpayer
=
IRA =
AmountA =
Amount 8 =
Financial Institution =
Dear
JUL 0 8 2014
20.1440031
This is in response to your letter dated June 5, 2013, and supplemented
by correspondence dated August 16, 2013,
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 represents that he received a distribution from IRA totaling
Amount A. Taxpayer asserts that his failure to complete a rollover of Amount 8,
a portion of Amount A, within the 60-day period prescribed by section 408(d)(3)
of the Code was due to erroneous information provided by representatives of
Financial Institution, which caused the funds to be unavailable for rollover.
Taxpayer further represents that Amount 8 has not been used for any other
purpose.

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2GJ440081
On August 23, 2012, Taxpayer withdrew Amount A from IRA with the
intent to complete a
rollover of Amount B within 60 days. Taxpayer discussed his
intent to complete a rollover
of Amount B with representatives of Financial
Institution and was assured that the plan proposed by Financial Institution would
result
in sufficient funds being available to complete a rollover by the 60-day
deadline. However, Financial Institution was unable to make the funds available
by the
60th day contrary to the information and plan provided earlier by Financial
Institution's representatives and upon which Taxpayer relied.
Based on the facts and representations, you request a ruling that the
Internal Revenue Service (the "Service") waive the 60-day rollover requirement
contained
in section 408(d)(3) of the Code with respect to the distribution of
Amount B.
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) the entire amount received (including money and any other prope~) is
paid into an IRA for the benefit
of such individual not later than the 60 .
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 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)
of the Code).
Section 408(d)(3)(B) 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 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 includible
in gross income because of
the application of section 408(d)(3) of the Code.

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2fl144003l~
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
or
good conscience, including casualty, disaster, or other events beyond the
reasonable control of the individual subject to such requirement.
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) 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 is
consistent with his assertion that his
failure to accomplish a timely rollover was
due to the erroneous information he received from representatives
of Financial
Institution.
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 8 from IRA. Provided all other requirements of section 408(d)(3) of the
Code, except the 60-day requirement, were met with respect to the contribution
of Amount 8 to IRA, such contribution will be considered a valid 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.
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
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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If you have any questions, please contact
Please address all correspondence to SE:T:EP:RA:T2.
Enclosures:
Deleted
copy
of ruling letter
Notice of Intention to Disclose
Sincerely yours,
201440031