IRS written determination 201432036

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
MAY 1 5 2014
Uniform Issue List: 408.03-00
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Legend:
Taxpayer A
IRA X
IRAY
Amount 8
AmountC
Amount D
Financial Institution E
Bank F
Entity M
Date 1
Date 2
Date 3
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201432038

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Dear xxxxxxxxxxxx:
2()1432036
This is in response to your request, dated September 6, 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 A represents that he received a distribution from IRA X totaling
Amount
B. Taxpayer A asserts that his failure to accomplish a rollover within the
60-day period prescribed by section 408(d)(3) was due to an error made by a
representative
of Financial Institution E. Taxpayer A further represents that
Amount B has not been used for any other purpose.
On Date
1, Taxpayer A received a distribution of Amount B from IRA X.
Taxpayer A intended to rollover Amount B into an IRA Y, a self-directed
individual retirement account held by Financial Institution E. Prior to receiving
Amount B from IRA
X, Taxpayer A had established Entity M, a limited liability
company, and also established a checking account for Entity M with Bank
F.
Financial Institution E is the sole member of Entity M.
A representative of Financial Institution E instructed Taxpayer A to make
rollover deposits into the checking account
established for Entity M. In
accordance with such instructions, on Date
2, Taxpayer A deposited Amount C
into the checking account established for Entity
M. On Date 3, Taxpayer A
additionally deposited Amount D into that checking account. The total
of
Amounts C and D equal Amount B.
In March 2012, Taxpayer A contacted the representative at Financial
Institution E who had instructed him to make the intended rollover contributions
into the Entity M checking account and was then told by such representative that
the rollover contributions should have been made to IRA Y before being
deposited into the Entity M checking account. That was the first time Taxpayer A
had been given such information.
It was not until Taxpayer A received a Form 1099-R showing the
distribution
of Amount B as being taxable that he realized the intended rollover
from IRA X to IRA Y was done incorrectly.
Based on 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 B.

. xxxxxxxxxxxxxxx
Page 3
2()1432036
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.
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.

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201432036
Rev. Proc. 2003-16, 2003-4 I.R.8. 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 information presented and documentation submitted by Taxpayer A is
consistent with his assertion that his failure to accomplish a timely rollover was
caused by an error committed by a representative of Financial Institution
E.
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 X. Taxpayer A is granted a period of 60 days from the
issuance
of this ruling letter to contribute Amount 8 into a rollover IRA. Provided
all other requirements
of section 408(d)(3) of the Code, except the 60-day
requirement, are met with respect to such contribution, Amount 8 will be
considered a rollover contribution 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 408(a)(6)
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.
In accordance with a power
of attorney on file in this office, a copy of this
letter has been sent to your authorized representative.

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201432036
If you wish to inquire about this ruling, please contact xxxxxxxxxx (ID
xxxxxxxx) at (xxx) xxx-xxxx. Please address all correspondence to
SE:T:EP:RA:T
3.
Enclosures:
Deleted copy
of ruling letter
Notice
of Intention to Disclose
cc: xxxxxxxxxxxxxx
xxxxxxxxxxxxxx
xxxxxxxxxxxxxx
Sincerely yours,
__ .--::<'/ ~/ . ~
.~VtA d? lt_b·· ·,_ -·<~
L-/ <.......__~
Laura B. Warshawsky, Manager,
Employee Plans Technical Group
3