IRS Lenient On Tardy IRA Rollover
IRS is not widely known for the mercy it bestows upon taxpayers. In one particular area of the law, however, leniency has almost seems to have become the norm.
Recall that taxpayers have long been able to essentially “borrow” from their IRA for a short period of time, as long as the dough is replenished within a 60 day period. Free loan – no questions asked. Those who violate the 60 day repayment rule, however, are snagged for tax on the withdrawal.
Over the years, many instances have arisen in which taxpayers, for one reason or another, have not timely re-deposited the IRA funds, and upon the appropriate plea of mercy have been granted absolution by the Revenooers.
So here comes yet another – in a recent private letter ruling, IRS has waived the 60-day rollover requirement for an individual whose hubby took some funds from her IRA under a power of attorney, but didn’t pay them back in time because he had frittered them away in some gambling pursuit, and wifey didn’t learn of the withdrawal (and fix the problem) until after the 60-day period had expired!
IRS will consider several factors in determining whether to waive the 60-day rollover requirement, including time elapsed since the distribution, inability to complete the rollover due to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, postal error, errors committed by a financial institution, and so forth.
Add to the list, now, nefarious actions by a sleazy husband.
And from our “legislators with too much time on their hands” department comes this nugget from the California Assembly: AB 1252, which provides Californians with what is certainly and clearly a long overdue definition, long awaited by California taxpayers: the definition of a hot dog, which is “a whole, cured, cooked sausage that is skinless or stuffed in a casing, that may be known as a frankfurter, frank, furter, wiener, red hot, vienna, bologna, garlic bologna, or knockwurst, and that may be served in a bun or roll.”
The Los Angeles Times reports that clearly defining what is and is not a hot dog will help health departments enforce sanitation standards for hot-dog carts and other food vendors. Undoubtedly a major problem, requiring public attention.
And if the IRS didn’t already have enough on its plate, now comes Rep. Jeff Duncan (R-S.C.), Chairman of the House Homeland Security oversight subcommittee, who wants to know why IRS law enforcement agents are training with AR-15 rifles. Duncan mused in a discussion with Politico, “Are Americans that much of a target that you need that kind of capability?”
CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He may be reached at 831-7288, welcomes comments at firstname.lastname@example.org, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.