Isolation of Basis – Still a Mess with the IRS
It is past time to make up their minds, but we remain stuck in limbo on this issue. However, even if this situation is clarified tomorrow, I cannot see the IRS requiring any corrective action on rollovers or distributions prior to 2010. Such corrective activity would literally create chaos with plan administrators, taxpayers and the IRS itself:
http://www.groom.com/media/publication/673_x-Allocating%20Basis%20in%20P…
Permalink Submitted by Alan Spross on Fri, 2010-04-09 04:25
Another major accounting firm releasing concerns………….and still no action from the IRS. This one raises the possiblity of revised 1099R forms, but I still think the chance of that is not great for 2009 and prior years:
http://benefitslink.com/articles/guests/washbull100405b.html