| IRS provides a tax break to Taxpayers whose rebate check was deposited into a IRA a/c
IRS provides a tax break to Taxpayers whose rebate check was deposited erroneously into a IRA account.
The IRS has stated that "not only will those taxpayers be able to extract the funds tax and penalty free, but more importantly, any earnings that were specifically attributed to the Tax Rebate need not be withdrawn."
Generally speaking these excess earnings must be distributed however, the IRS has waived this rule. The due date to remove the Rebate deposited funds will be the due date for the 2008 tax return along with any extensions.
In short, the IRS has generously given taxpayers a temporary boost to their IRA funds to the extent of earnings generated by Tax Rebate check deposited directly into the IRA account.
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