The IRS has the authority to waive the 60 day requirement if the rollover is not made under certain circumstances 1) error of custodian, 2) inability to complete rollover because of death, disability, hospitalization, incarceration or postal error; 3) how you use the distribution; and 4) how long a time it was after the 60 day rollover period. Taxpayer withdrew funds to live on and pay his bills from his IRA Account after his unemployment ran out. Soon after the 60 days expired, he received permanent employment and wanted to re-deposit the money into his IRA Account, but the IRS refused the extension saying that he had taken the money for a short-term interest free loan and they would not waive the 60 day rollover requirement. Result: Taxpayer had to pay income tax on the whole IRA.