IRA Enforcement Initiative

June 23, 2012

Let’s be honest: reports of the Treasury Inspector General for Tax Administration do not make for fascinating reading. And you are hearing this from someone who feasts on items like the new regulations dealing with portability of deceased spousal unused exclusion amount for estate and gift tax purposes. So hats off to Kelly Greene for an excellent article in the Wall Street Journal discussing how one of those reports appears likely to spur new enforcement efforts from the IRS in relation to IRAs. Among the issues:

  • Failure to take required minimum distributions after age 70½
  • Failure to complete a rollover within 60 days
  • Failure to comply with rules for inherited IRAs

In light of an expected increase in enforcement, this is a good time for taxpayers and their advisors to determine whether they have problems in this area and what corrective measures are appropriate.

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