60-day R/O & wkend deposit
[b]Question:[/b]
If a client transacts a 60-day rollover with their “60th day” landing on a Saturday, do they get an automatic extension to the following Monday, or is Saturday the date, regardless? I’ve gotten conflicting opinions, but in 590 a weekend or holiday is not outlined as an option under “Automatic Waiver”. That makes me believe that the Saturday date stands and the deposit will generally have to be made on the preceeding Friday (unless the custodian is open on a Saturday).
[b]Example:[/b]
60-day deadline is Saturday, 2/26. Assuming the custodian is only open during market hours, will the depoist have to be made be COB 2/25, or will the individual have until Monday, 2/28 to make their deposit?
Permalink Submitted by Alan Spross on Tue, 2011-02-22 18:00
See att’d, Sec 7503:
http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._7503._Tim…
But it may take some convincing since few custodians are aware of this section; there have also been some PLRs which bring into question whether the IRS itself is aware of this section………….best bet is to avoid the issue if possible and not depend on it. If custodian will not accept the rollover, then taxpayer should roll it to a different custodian and if the custodian asks, tell them that the rollover is being completed within the prescribed rollover period.