SEP Corrections

[Fisher]

Is there any method to correct SEP contributions. For the last several years, a client only used base wages for contributions that were declared. They have been operating under the Model 5305 and did not know they could not exclude bonuses and overtime. Can they self-correct?

[Gary Lesser]

Probably. See Rev. Proc. 2006-27, Section 6:10.

Hope this helps.