Failed 1031 Exchange Question

[Stacey Kane]

I have sold one of my rentals with an intent to do a 1031 exchange. I was able to identify a property literally the last day of my identification period. Unfortunately, there were multiple offers and I did not get the property. My 1031 Exchange processor told me that I can not receive my money for another 180 days. When I asked if that was an IRS requirement or internal policy they said IRS. It makes no since to me that this would be a requirement when I have a failed exchange. I can't find anything that states such a thing on the IRS website. Has anyone dealt with this type of issue before?