IRS provides a self-certification procedure to fix failed 60-day rollovers

In a much welcomed development, the IRS today released a self-certification procedure to provide relief for tax payers who inadvertently miss the 60-day window to roll over a retirement account distribution to another retirement account.

The Service outlined 11 check-box circumstances which qualify for this relief and which plan trustees, administrators, financial institutions, and the IRS may accept under the Revenue Procedure 2016-47. A model self-certication letter was provided in the Rev. Proc. Another new option- IRS now has the authority to grant a waiver during a subsequent tax return examination- has also been added to the list of remedies.

The self-certification procedure eliminates the need for a more expensive and time-consuming option of requesting a private letter ruling from the IRS for a wide array of reasons. That said, if none of the circumstances outlined in the Rev. Proc 2016-47 apply, the private letter ruling route is still available.Click here for a full text of the Revenue Procedure 2016-47.