Anyone hear of this rule?

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L1: Anyone hear of this rule?I have a client who contacted the IRS directly to ask them what the penalty would be for breaking or busting a 72T plan. To my surprise, he said that they told him once a 72T plan is busted, that person is prohibited from taking SEPP ever again, and they cannot create a new SEPP. Has anyone ever heard of this or know anything about this?2008-05-02 10:06, By: PAS_broker, IP: [69.3.120.67]
L2: Anyone hear of this rule?No, I have not heard of this and am dubious as to its authenticity. Is anything that the IRS says or writes to individual tax payers, other than PLRs,legally binding upon them in tax court? It would have been much more useful if the source of this information would have given a specific IRS code section as a reference to its legality.
Ed2008-05-02 15:07, By: Ed_B, IP: [67.170.159.37]

L2: Anyone hear of this rule?Someone told me that the IRS answers approx 1/3rd to 1/2 of its phone inquiries incorrectly…this is clearly one of those.
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P.S. There is case law and at least one PLR 100% contraey to what your client was told.2008-05-02 15:34, By: TheBadger, IP: [72.42.66.180]