For those interested, here is the IRS summary of a study done relative to the tax gap on retirement income reporting. For those reviewing this report, much interesting information shown as “2f” was deleted from public viewing.

The major recommendation is NOT being adopted. It would require 1099R forms and 5498 forms be expanded to include the actual dates of distribution and contribution so the IRS could monitor compliance with the 60 day rollover time limit. Can’t imagine how many additional PLR requests would result had this been adopted.

The tax gap on retirement income reporting is estimated to be around 1% of the total tax gap. I think the central benefit emanating from this study is that the gap is limited to just that 1%.

http://www.treasury.gov/tigta/auditreports/2012reports/201230011fr.pdf