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News & Press: UPPO Advocacy Activity

Holders Coalition Submits Comments Regarding IRS Revenue Ruling Conflict ​

Wednesday, September 5, 2018   (0 Comments)
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The Holders Coalition – a group of organizations, including UPPO, whose members hold or represent owners of property – submitted comments on Sept. 4, 2018, to Internal Revenue Service and Department of Treasury officials regarding IRS Revenue Ruling 2018-17. The comments seek clarification and guidance regarding compliance with the ruling, issued by the IRS on May 29, 2018.


The ruling specifies that when an IRA account is transferred to a state in accordance with the state’s abandoned property law, the account becomes subject to federal income tax withholding and Form 1099-R reporting under the Internal Revenue Code. 


In particular, the ruling raises concerns for institutions that maintain IRA assets on behalf of IRA owners when the IRA account includes securities. Because unauthorized liquidation of securities would be necessary to comply with the ruling’s withholding and tax payment requirements, the Holders Coalition expressed its concern that compliance with the IRS ruling could breach federal securities law.


To work through this conflict before the ruling’s Jan. 1, 2019, implementation date, the Holders Coalition requested a meeting with IRS and Treasury officials as soon as possible.


Read the Holders Coalition letter and learn more about UPPO’s involvement in the coalition.

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