IRS PLR Cites USPS Delay in Approving 60-Day Rollover Waiver


August 3, 2012 – The IRS has issued private letter ruling (PLR) 201236038, granting a taxpayer the right to complete an IRA rollover beyond the normal 60-day deadline for such action. In this PLR request, the taxpayer claimed to have mailed the rollover check to the receiving financial organization for deposit into an IRA within the statutory 60-day period, but the organization did not receive the check until after the deadline had passed. The taxpayer asserted, and provided documentation to the effect, that late receipt of the check was due to U.S. Postal Service delay; requested first-class delivery took seven days. The IRS cited guidance found in Revenue Procedure 2003-16, which specifically refers to “postal error,” in waiving the 60-day rollover limitation. (The IRS did not cite the fact that the taxpayer had actually mailed the check to the financial organization within the 60-day period).

 IRS PLR 201236038 can be accessed at this URL: http://www.irs.gov/pub/irs-wd/1236038.pdf

My Ascensus
Forgot Username or Password?