Disqualified plan losing deduction for form 1120, 1120S, schedule C on form 1040, etc.; absolutely or to the degree non-vested? Please provide referen

[Guest Enda80]

For a disqualified plan, does the loss of deduction for the 1120, 1120S or schedule C on the 1040 occur absolutely or to a degree (i.e. the degree nonvested)?

For a disqualified plan, does the loss of deduction on the 1120, 1120S, or schedule C on the 1040 occur absolutely or to a degree (i.e. to the degree nonvested)? If so, why does a qualified plan just a deduction of all amounts, vested or non-vested? Please provide a supporting reference in an official source.

[GBurns]

In the cases that I have seen reported and the few that I have actually been involved with, there was no rev proc or any official source other than the IRC and Treas Regs. Both allow deductions for a plan. If a plan is disqualified, it means that a plan does not exist. If a plan or any other item does exist then logically there can be no deduction for it. This needs no cites.

As to whether a disallowance or disqualification is absolute, total or partial etc, is a facts and circumstances issue, and subject to negotiation with the examiing agent.