Waiver of excise tax on excess contribution
As I understand it, there is no specific statutory provision that will allow the IRS to waive the 6% excise tax on excess contributions tax.
Taxpayer, received poor financial advice, had a bad rollover, funds were withdrawn but had to pay the 6% excise tax.
Is the Voluntary Corrections Program an option? Are there any other options to waive the 6% excise tax?
Mike
Permalink Submitted by Alan - IRA critic on Mon, 2013-05-20 18:00
No voluntary correction options that I know of to waive the penalty if the excess is not corrected by the extended due date. Depending on the details of the “bad rollover” and the amount involved, there might be possible relief via a letter ruling request to rescind the rollover to the IRA in the first place, but that’s quite a long shot.