IRS written determination 201428012

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
Uniform Issue List: 408.03-00
APR l ? Z(/14
XXX XX
XXX XX
xxxxx
Legend:
Taxpayer
IRA X
Financial Institution A
Amount
Dear XXXXX:
=
XXX XX
=
XXX XX
=
XX XXX
=
XXX XX
201428012
This is in response to your letter dated June 10, 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
on March 7, 2013, he received a distribution of Amount
from IRA
X. Taxpayer asserts that his failure to accomplish a rollover within the 60-day
period prescribed by section 408( d)(3) of
the Code was due to the fact that he had
forgotten to deposit the funds into another
IRA within the 60-day period. Taxpayer further
represents that Amount
has not been used for any other purpose.
On March 18, 2013, Taxpayer deposited Amount into his non-qualified checking
account
with Financial Institution A. On May 12, 2013, Taxpayer attempted to deposit
Amount into another
IRA, however he was informed that he had missed the relevant 60-
day rollover period by four days. Taxpayer asserts that he was aware of the 60-day
period. Nevertheless, Taxpayer admits that
he forgot about this requirement and let the
time expire.
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.

201428012
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.
Section 408(d)(3) of the Code defines, and provides the rules applicable to IRA
roll overs.
Section 408(d)(3)(A) of the Code provides that section 408(d)(1) 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 60
1
h
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.
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)
(related to required minimum distributions under section
401 (a)(9) and incidental death
benefit requirements of section
401 (a)).
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) 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, 2003-41.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) of the
Code, the Service
will consider all relevant facts and circumstances, including: (1) errors
committed by a Hedge Fund; (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.

201428012
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 in Rev. Proc. 2003-16, for example, errors committed by a financial
institution, death, hospitalization, postal error, incarceration, and/or disability. Taxpayer
has asserted that he had simply forgotten to roll over the distribution into another IRA
within the 60-day period. Accordingly, we find that Taxpayer has not alleged that any
of
the factors enumerated in Rev. Proc. 2003-16 prevented him from timely completing the
rollover.
Therefore, pursuant to section
408(d)(3)(1) of the Code, the Service hereby
declines to waive the 60-day rollover requirement with respect to the distribution of
Amount from IRA
X.
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.
Pursuant to the power of attorney on file with this office, a copy of this letter ruling
is being sent to your authorized representative.
If you wish to inquire about this ruling, please contact
XXXXX at XXXXX. Please
address all correspondence to SE:T:EP:RA:T2.
Enclosures:
Copy of ruling letter
Notice of Intention to Disclose
cc:
xxxxx
XXX XX
XX
XXX
Sincerely yours,
Jason
E. Levine, Manager,
Employee Plans Technical Group 2