IRS written determination 201548026

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.

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
SEP 0·3 2015
Uniform Issue List: 408.03-00
Legend:
Taxpayer A
=
IRAB
=
Bank C
=
Amount 1
=
Amount 2
=
Dear
201548026
This is in response to your request for a ruling dated September 14, 2014, as
supplemented by correspondence dated March 17, 2015, from your authorized
representative, 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 he received a distribution from IRA B totaling
Amount
1. Taxpayer A asserts that his failure to accomplish a rollover of
Amount 1 within the 60-day period prescribed by Code section 408(d)(3) was
due to stress caused by legal proceedings being pursued by his ex-wife.
Taxpayer A maintained IRA
Bat Bank C. Believing his ex-wife was about to
initiate legal proceedings to attach his IRA, Taxpayer A
on September 5, 2013,
requested a distribution
of Amount 1 from IRA B. Taxpayer A received a check

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201548026
for Amount 1 less termination fees of Amount 2 which were withheld by Bank C.
Taxpayer A set the check aside continues to
hold the check uncashed.
Taxpayer A represents that a friend suggested he withdraw Amount 1 from
IRA B. Taxpayer A further represents that the stress caused by his divorce
proceedings as well as some medical issues prevented him from completing a
rollover. However, Taxpayer A indicated he did not remember he had taken the
distribution until his tax-preparer
in early 2014 questioned the Form 1099 he
received concerning the distribution.
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 1.
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 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)).
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).
Section 408(d)(3)(D)
of the Code provides a similar 60-day rollover period for
partial rollovers.

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201548026
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.B. 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), 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 Service has the authority to waive the
60-day rollover requirement for a
distribution from an IRA where the individual failed to complete a rollover to
another IRA within the 60-day rollover period but was prevented from doing so
because
of one of the factors enumerated above in Revenue Procedure 2003-16.
In this instance, however, the Service finds that the documentation and materials
provided by Taxpayer A do not demonstrate how any
of these factors resulted in
his failure to accomplish a timely rollover
of Amount 1. Taxpayer A represented
that he took the distribution because
of anticipated legal proceedings by his ex-
wife and subsequently forgot he had taken the distribution until after the 60-day
period had expired.
Therefore, pursuant to section
408(d)(3)(1)
of the Code, Taxpayer A's request
that the Service waive the 60-day rollover requirement with respect to the
distribution
of Amount 1 is declined, and Amount 1 is therefore includible in
Taxpayer A's gross income for the 2013 taxable year.
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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2'01548026
A copy of this letter ruling has been sent to your authorized representative
pursuant to a power
of attorney on file in this office. If you wish to inquire about
this
ruling, please contact (ID # ), , at ( ) or
Sincerely yours,
UdJi;rO·v/~
Manager
Employee Plans Technical Group
1
Enclosures:
Deleted Copy
of this Letter
Notice
of Intention to Disclose, Notice 437
cc: