A relative informed me that in 2007 she inadvertently violated the one indirect IRA transfer per year rule. On multiple occassions during 2007, she withdrew funds from a single IRA account at a brokerage and immediately deposited the funds into rollover IRA CDs at banks. She was only aware of the 60 day rule, and not the once per year rule for indirect transfers. It is clear from the timelines and facts that the only intent was to transfer the funds to a new custodian and not to "borrow" the funds (rollover IRA CDs were all opened within 5 days of receiving the distributions). Although technically a violation of the rule, it is clear the intent was to do a tax-free rollovers. If she were to report these distributions as nontaxable on her return, what are the odds that they will be detected as a violation given the fact the banks will report a matching incoming rollover? Is there any possibility she could go to the IRS now, explain what happened, and obtain their forgiveness due to ignorance of the rule?