Tuesday, March 25, 2014
A U.S. Tax Court judge recently penalized an IRA rollover move that IRS Publication 590 says is allowed.
Prominent tax lawyer Alan L. Bobrow made the disputed rollover. This decision is so worrying that a group of 700 prominent tax lawyers are filing a friend of the court brief in support of Bobrow. They argue that this decision “undermines public confidence in the tax system to tell taxpayers who have followed the IRS’ own guidance that they ‘have made an error with potentially catastrophic financial consequences.’”
For an in-depth discussion of the decision and ten valuable lessons to learn from this strange case, see Janet Novack’s article below.
See Janet Novack, Gotcha! Tax Court Penalizes IRA Rollover That IRS Publication Says Is Allowed, Forbes, March 25, 2014.