|
Posted by D. Stussy on April 20, 2008, 12:22 am
Please log in for more thread options
> > My wife went to a local bank on April 15 and opened a $5,000
> > traditional IRA, paid with a check dated April 15, was re-assured by
> > the consultant that everything would be mailed to the financial
> > institution (Alliance Bernstein) in time to claim a deduction for
> > 2007.
> >
> > Today we got the check back via FedEx from Alliance Bernstein, with a
> > note saying that the mailing was postmarked April 16. This will cost
> > us an additional $850 in taxes.
> >
> > We called the bank consultant and got an apology.
> >
> > What can we do?
>
> My take is that the consultant is an agent for Alliance Berstein
> and so when you wrote the check you effectively mailed it and it
> is good.
Effectively DELIVERED it. Wasn't it handed to the agent?
> That argument is going to get you no where unless one of you
> shows up at the bank and gets the contribution remailed with
> a letter of explanation from a officer of the bank.
>
> Even then it may not fly. But it is worth the effort.
>
> Dick
I agree wth this approach. However, what are the facts:
1) Who is the custodian? The bank or Alliance Bernstein.
2) Is the bank an agent for Alliance Bernstein?
If the answers are to the first question, the bank, or the second question,
yes, then it looks to me like you did satisfy all the necessary
requirements.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Bob G on April 21, 2008, 9:49 pm
Please log in for more thread options
Thanks for all your responses.
My wife has clarified the entire sequence of events and I expect it
may make a difference in your advice.
She had an existing IRA with Alliance-Bernstein (AB). On April 15 she
called their number, obtained from a regular account status statement
recently received in the mail, and told them she wanted to contribute
another $5,000 for tax purposes. They told her to get in touch with
one of their representatives, a Mr. KJ, whose name was listed as
“Advisor” on the same AB account statement, and who works for the Bank
of Oklahoma (we live in Oklahoma City).
She called this gentleman and he told her to go to the nearest branch
office. There she dealt with a young man, who wanted to confirm
everything and called KJ on the spot. KJ was not available and he was
referred to his assistant, Ms EM, also a Bank of Oklahoma employee.
Ms EM said everything was in order, to accept my wife’s check for
$5,000 and to “inter-office” it to her. My wife then wrote a check for
$5,000 dated on that date, April 15, and left it with the young man.
A few days later we got the check back from AB with a note that it had
been received past the April 15 deadline, sorry. We called AB and they
said nothing could be done. We then called KJ at the Bank of Oklahoma
and again were referred to his assistant, Ms EM. She said that the
check wasn’t mailed until the next day because “all these companies
give a few days’ leeway”. There was nothing she could do, sorry.
That’s where it stands. We’re going to the bank tomorrow morning and
see what can be done. We’re incurring additional taxes of $1,250,
which includes federal and Oklahoma state taxes.
My opinion is that the check was accepted on the 15th of April by an
authorized representative of AB and therefore it qualifies for a tax
deduction. The fact that Mrs EM, acting as the assistant of the person
who appears on the AB statement as AB’s “Advisor”, accepted the check
on the 15th, constitutes actual and legal acceptance of the IRA
contribution on that date.
I would appreciate your comments. Thanks.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Bob G on April 22, 2008, 9:37 pm
Please log in for more thread options All's well that ends well!
The Bank of Oklahoma acknowledged it was at fault and found another
company that accepted our April 15 check and started an IRA for us.
Alliance-Bernstein remained intransigent, even though the bank tried
to reason with them.
Thanks all for your help!
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Elle on April 22, 2008, 11:56 pm
Please log in for more thread options > All's well that ends well!
> The Bank of Oklahoma acknowledged it was at fault and
> found another
> company that accepted our April 15 check and started an
> IRA for us.
> Alliance-Bernstein remained intransigent, even though the
> bank tried
> to reason with them.
> Thanks all for your help!
Wow, interesting! Good for you for following up on all this.
I bet your posts here are going to help someone else in the
future.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Edward on April 19, 2008, 11:35 am
Please log in for more thread options Bob G wrote:
> My wife went to a local bank on April 15 and opened a $5,000
> traditional IRA, paid with a check dated April 15, was re-assured by
> the consultant that everything would be mailed to the financial
> institution (Alliance Bernstein) in time to claim a deduction for
> 2007.
>
> Today we got the check back via FedEx from Alliance Bernstein, with a
> note saying that the mailing was postmarked April 16. This will cost
> us an additional $850 in taxes.
>
> We called the bank consultant and got an apology.
>
> What can we do?
>
Actually, the bank may owe you a lot more, depending upon your age.
Your 2007 contribution would have grown tax free for x number of years.
You may have had an oral contract with your bank. If so, you
definitely have recourse against the bank, but you made need a lawyer to
assert your claim, and not many lawyers will take such a small case.
Try sending a letter to the banks legal department, explaining that you
relied upon your consultant's representation, and that you could have
mailed the check yourself. By the way, this should not be considered
legal advice. Check with your local bar association.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | Help with non-qual stock option...I think I am screwed | March 7, 2007, 4:49 am |
| What is my recourse? | January 25, 2007, 3:02 am |
| Re: Bank Closure of my accounts | October 21, 2006, 6:52 pm |
| Foreign Bank Accounts | April 18, 2007, 1:57 am |
| Bank didn't send a 1099INT?! | February 25, 2008, 5:41 pm |
| bank error in minimum distribution - | January 30, 2007, 11:11 am |
| MA State Tax: How to not include bank interest | April 9, 2007, 2:51 am |
| Bank Interest in Kansas for non-resident. | February 7, 2008, 1:43 am |
| reporting past balances in foreign bank acct | April 15, 2007, 1:23 pm |
| Penalty for mistake with bank acct number - forgiveness possible? | May 29, 2007, 10:45 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap