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Jainen, Rev Proc. 2003-16, Help please


BulldogTom

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Jainen,

I have a client who left her job and requested a rollover of her retirement plan. The old company made the transfer to the new financial institution, but the new institution did not create the account nor deposit the money on her behalf. They sent her a check after the 60 days had expired. Reading Rev Proc. 2003-16 it looks like the automatic approval of the waiver of the 60 day rule is applicable.

How do I file the return to show that the rev proc applies. In the old days, I would have hand written "REV PROC 2003-16" on the top of the form and mailed that sucker in. How do we go about it in the electronic age.

Thanks for your help. It might help if I read the instructions, but I haven't been chewed out by you in a while so I thought I would ask. Really, I just want to know if the Rev Proc is still in effect.

Thanks.

Tom

Hollister, CA

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>>I just want to know if the Rev Proc is still in effect.<<

Yes, it is still in effect and I don't think you have to do anything except report the rollover in the ordinary way.

But I'm not familiar with the banking technique of giving away money without being told to. Are you SURE the client completed all the paperwork at the new bank? Have you actually seen the paperwork? Because that Rev Proc you cite is particularly pointed on that particular point.

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Well, the client went back to the offices of the financial advisor, asked why she had not gotten her confirmation, stood in front of him while he got her on a conference call to the main office, and told her not to worry, everything was fine and they would take care of it. A week later, she called back, he wouldn't take her call. A week later, he would not take her call. A week later, she called the main office and they never heard of her. Two days later the check was cut and sent to her. They never asked for anything else after she initially signed up.

I see in the letter they say their are outstanding requirements on the application and so are returning the money. However, it was a direct trustee to trustee transfer when done. She never got the money until they sent it back to her.

What do you think. They are covering their rear ends because the broker screwed up. Or do you think my client somehow did something wrong and it was her fault? She tells me she stood in his office and they never asked for anything else. Just told her it would all work out.

Tom

Hollister, CA

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>>What do you think... it was her fault?<<

No, it wasn't her fault but that's irrelevant. She trusted the sales people in the front office, as we all do, without seeing how screwed up the management is. So the paperwork isn't there, so she can't prove it, so it's not eligible for automatic approval. Tell her not to feel bad--nobody is ever eligible anyway!

Draft a sob story to the banking commission. Have her show it to the bank manager and ask why she shouldn't mail it, and demand they pay the user fee for a Private Letter Ruling.

And her accountant's fee too, of course. By the way, the IRS published three of these just in the last week--all approved!

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