IRA Rollover

[k man]

anyone ever get a letter on the 408 waiver of 60 day rollover rule due to error of the financial institution. i have two cases from a couple of years ago where the "rollovers" were not treated as such due to errors. now i must decide wether to throw myself at the mercy of the IRS and get letter or let sleeping dogs lie and raise the issue if they ever get audited. any opinions out there would be helpful.

[Guest IraSue]

anyone ever get a letter on the 408 waiver of 60 day rollover rule due to error of the financial institution. i have two cases from a couple of years ago where the "rollovers" were not treated as such due to errors. now i must decide wether to throw myself at the mercy of the IRS and get letter or let sleeping dogs lie and raise the issue if they ever get audited. any opinions out there would be helpful.

In my experience, if it truly was an error on the part of the financial institution, the taxpayer would get relief. Working as the manager of an institution, when it is our error, we are happy to provide documentation to the taxpayer to alleviate any negative IRS ramifications. I am also of the opinion that IRS is looking for willful violaters of the Code, not people who made mistakes and want to rectify them. I would first request documentation of the institution's error (if you have not already), then keep the documenation, but I would not bring it to the IRS's attention; I would wait to see if the taxpayer is audited. Good luck!

~S~