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Bob Kaplan mentioned at the ASPA conference that someone was imprisoned for failure to deposit deferrals on a timely basis. Her name was Ida Halworth. He said we should be able to search the DOL website on what happened but I am unable to find anything on this. Does anyone know where I can find this information?

Unless you consider snoring as being hysterical. Just kidding.

I tend to agree. If one has self-employment loss in a controlled group, then it needs to be netted. If it is two distinct businesses such, as in a case of an owner of two businesses that are not a controlled group but a multiple employer plan (or other similar scenario), then you would not net.

Tom, you are full of crap! (inside joke) The IRS did mention that they are planning on adding a retirement plan practitioner to the 2848. They made it sound like it would be soon but you never really know.

This is strictly a hypothetical. When I posed the question, my thought pattern was that this is a change in corporate form.

You are correct. They do not have to file under the VFCP.

Okay, sorry. Yes, this person was a regular employee and became a partner with the same firm mid-year.

Moe, in my initial scenario the plan sponsor changed from an S-corporation to an LLC (taxed as partnership). He paid himself W-2 income while an S-corp. He was always the owner. I see your point, Moe, but I am still uncertain if that is the correct way to handle it. I posed a question similar to this situation to the IRS Q&A session at the ASPA conference starting this weekend. I hope it gets a response. Hopefully I will run into Derrin Watson as well and maybe he can share his opinion.

I did some more research on this subject. I found that the IRS was asked a question similar to this situation at the Joint Committee on Employee Benefits of the ABA back in 2001. The question basically stated that a participant received w-2 wages for the first half of the year and then became a partner and received a loss that was greater than his w-2 compensation. The IRS's position was that his compensation for the plan year was ZERO. The cite is This is also mentioned in The ERISA Outline Book. Anyone have any other comments or opinions with this said?

Shouldn't your calculation assume a certain rate of growth of messages per day?

I have a client that was the sole owner of an S-corporation. The S-corporation shutdown midyear and became an LLC. The plan continued. The client paid himself $168,000 from the S-corp and had a loss from the LLC. Would his year end compensation be $168,000 or 168,000 less the loss?

I have a client that would like to submit for a PTE to buy some land out of the plan. If the DOL approves the PTE, does anyone know how long an exemption is good for?

Anyone know what type of plan design this is? http://www.chernoffdiamond.com/aans/

Now that you mention it, that does sound familiar to me too. I believe there is a regulation under 415 that is interpreted as giving 30 days after the 404(a)(6) due date. As R. Butler said though, the contribution would not be deductible for the same year.

You made a good point so I went back and looked at a few of my 5500 tax guides to see what they said. They agreed that if a profit sharing plan used the employer's EIN and makes distributions in cash, a sch R is not needed whether or not a plan is qualified or non-qualified.

You need to read the rest of the instructions. The next line reads: "This condition i n ot met if benefits were paid by the trust or any othe payor(s) which are reportable on Form 1099-R."

The contribution is to be deposited by the due date of the tax return. If the due date has already passed then there is nothing he can do.

Schedule H is setup in this format.

It depends on who the payor is. If you use the EIN of the employer then you don't have to file. However, if someone else is used then you would have to file.

I have a brand new VEBA that is setup for a company's retired employees. No current employees are eligible. Since all participants are retired, should I enter the number of participants under line 7a or 7b?

I can't remember the cite offhand but the IRS did issue guidance that stated a reference to the SPD is sufficient.

That is correct. However, you said in your first post that you received a 1065 which means they are being taxed as a partnership. If they are being taxed as a corporation then you would have received a 1120.

You are correct. A member of an LLC should receive guaranteed payments. They are not allowed to receive W-2 income.

The IRS can charge late penalties. If they do decide to charge these late penalties, they are minimal. I have had clients file many 5330s late and I have yet to have the IRS charge any penalties on them. I would recommend to go ahead and file and wait to see if you hear from the IRS. If you do, the fee is very small so it would not be a big deal.

Why are you filing a 990T?