This information will be used by plan administrators and IRA trustees to accept contributions as rollover contributions and to report these contributions as rollover contributions. The IRS may also use the information to determine if a taxpayer meet the requirements for a waiver of the 60-day requirement.
Rev. Proc. 2016-xx will allow taxpayers to restore the balance in their retirement accounts when they fail to roll over a distribution from a plan or IRA within the 60 days required by statute because of an unforeseen emergency, such as a serious illness, that prevented the timely rollover. Without this revenue procedure, the only way for a taxpayer to return money to his or her retirement account after the 60-day deadline is to pay a new $10,000 user fee for a ruling from IRSâs Tax Exempt and Government Entities Division (TE/GE) waiving the deadline. There is one exception: where the failure is due entirely to an error on the part of the financial institution maintaining the plan or IRA. Due to a lack of resources, TE/GE is unable to offer a reduced-fee rulings program as is offered by other parts of IRS. Prior to February this year, the user fee was graduated according to the amount of the rollover with a maximum fee of $3,000 for rollovers of $100,000 or more. The new fee is out of reach or unjustifiable for most taxpayers, which will result in a permanent loss of retirement funds for these taxpayers. The National Taxpayer Advocate has described this revenue procedure as âvery taxpayer-positive guidanceâ and would like to see it released to the public as soon as possible.
In addition to benefitting taxpayers, the guidance will require IRA trustees to report the acceptance of a late rollover on Form 5498, IRA Contribution Information, beginning in 2017. If the guidance had to wait for the normal review process, it would not be issued in time to be included in the 2017 Form 5498 Instructions.
For these reasons, we ask that OMB approve the collection of information on an expedited basis. The Chief Counselâs Office, TE/GE and Treasuryâs Office of Benefits Tax Counsel have taken all practicable steps to minimize the burden of the collection of information. By providing a model letter for taxpayers, which requires only simple entries, we have minimized the burden on taxpayers.
US Code:
26 USC 408
Name of Law: Individual retirement accounts
US Code:
26 USC 402
Name of Law: Taxability of beneficiary of employees' trust
This is a new revenue procedure. This revenue procedure is being issued to provide a means for taxpayers to roll over a distribution from a plan or IRA after the statutory 60-day deadline. The 450 hour increase and increase in responses (150) is due to this being a new information collection request.
No
No
No
No
No
Uncollected
Roger Kuehnle 202 317-4148
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Supporting Statement - waiver rev proc (4).docx
Waiver of 60-Day Rollover Requirement