Think you can rely on an IRS publication to beat a penalty?
We previously told you the Tax Court held that for a filer with multiple IRAs, the rule of one rollover every 12 months applies on an aggregate basis to all IRAs, not on an IRA-by-IRA basis. This decision conflicts with an IRS proposed regulation and Publication 590, both of which say the rule applies on an IRA-by-IRA basis. Still, the Tax Court says that the IRA owner owes a 20% accuracy-related penalty (Bobrow).
In its view, IRS publications aren’t substantial authority for positions taken on returns