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Even a Tax Lawyer Can Get the IRA Rollover Rules Wrong
Stinson Link to more items from this source
Feb. 13, 2014
"The tax lawyer claimed that the 12 month rule should apply separately to each IRA. The IRS countered that all IRAs should be treated as a single IRA for this purpose and the tax court agreed. Therefore, the lawyer had to include in income the amount of the second rollover distribution since it was not a proper rollover.... Because the amount of the failed rollover exceeded 10% of the lawyer's gross income for the year, the lawyer was also subject to a substantial underpayment penalty of 20% of the amount involved.... Although not mentioned in the court's opinion, in its Publication 590, Individual Retirement Arrangements for use in preparing 2013 tax returns, the IRS embraces the tax lawyer's position[.]"

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