clangeland

Lou, Thanks for the reply. Does not matter that the service was earned prior to the effective date of the plan or that the employee was not employed on their initial plan entry date? Thanks

I have a new calendar year plan with an effective date of 02/01/2015. Corbel PPA Prototype. Eligibility Requirements are Age 18 and 6 Months of service, quarterly entry. All employees employed on the effective date were eligible as of 02/01/2015. Question is we have a employee who was rehired after 02/01/2015 and had previously met the Age 18 and 6 month service requirement. When do they enter? On date of rehire, next quarterly entry date or do they have to meet the 6 month service requirement again. Assume no rule of parity or no 1 year holdout apply. Any input would be appreciated. Thanks

Flyboyjohn - Your suspicion was correct, the SEP is on a calendar year as it is on IRS Form 5305. Just to confirm, the 25% contribution limit would be based on the compensation from 01/01/2012 - 12/31/2012 and the 25% deduction limit would be based on the compensation from 02/01/2012 - 01/31/2013? Thanks for the reply, Chuck

We have a client who maintains a SEP in accordance with his company Fiscal Year End of 01/31. It appears his contribution limit for the 01/31/2013 plan year is the 2013 limit of $51,000, this amount is less than 25% of his compensation. Would he take the deduction for this 2013 contribution on his 2012 (02/01/2012 - 01/31/2013) company tax return? Thanks, Chuck

So even though they have filed the return and it has a "Filing Received" status we could go ahead and file another return checking the DFVC box? Would you also check the amended box? Does anyone know when you receive the DFVC number and about how long that might take? Appreciate the input. Thanks

We have a client who received a IRS notice stating that their 10/31/2007 5500 was not received. The return was prepared and sent to the client but the client could not confirm that it was mailed timely. They responded to that letter stating that it was mailed timely and attached a copy of the return to the letter. Apparently the IRS did not buy it, additional notices were sent and most recently we had to e-file the return using 2009 forms and also attached a letter of explanation and a copy of the original 10/31/2007 return. They have since recieved a notice from the IRS stating the return was received after the due date and are proposing a $15,000 penalty. The letter does have a spot where you can enter DFVC information. My question is can they still file through DFVC paying the $750 and then respond to this notice stating that they have done this? They have not received any notification from the DOL. Any input would be appreciated. Thanks