schedule I

[Guest lip]

We are arguing with cpa.

he says if contribution to p/s plan(calendar year plan 2007)went in on 10/18/08

it should still go on the sked I for the 2007 filing since it's receivable.

I say that's absolutely incorrect.

to further complicate matters;we were told monies were put in by 10/15 and filed sked I with contribution included;I claim we need to do amended return for 2007 with zero contribution!

and also we say accountant needs to do amended corp return.

any thoughts?

ty

[mphs77]

We are arguing with cpa.

he says if contribution to p/s plan(calendar year plan 2007)went in on 10/18/08

it should still go on the sked I for the 2007 filing since it's receivable.

I say that's absolutely incorrect.

to further complicate matters;we were told monies were put in by 10/15 and filed sked I with contribution included;I claim we need to do amended return for 2007 with zero contribution!

and also we say accountant needs to do amended corp return.

any thoughts?

ty

Are you doing the return on a cash or accrual basis?

[david rigby]

Perhaps others have different opinions here, but I vote with the CPA. Why? Because he is the CPA. If CPA amends corp return, then amend 5500. If CPA does not amend corp return, then don't amend 5500. IMHO, those are the only choices.

But, in the meantime, you have explained your position (not "argued") to the CPA and plan sponsor, in writing. It's their decision.

[Bird]

Assuming you're doing the return on an accrual basis, and I don't think the question would arise if not, then I would include the contribution as a receivable...making another assumption that the contribution has been allocated in some way, shape or form "to" 2007.

You're only allowed to count it as an annual addition if the contribution is made within 30 days of the tax return due date, and it sounds like that was missed. But I think it could still be allocated based on 2007 compensation, so it would be "for" 2007 even if some important deadlines were missed.

And if it was a safe harbor contribution, then that is "due" for safe harbor purposes by 12/31.

And yes, the corporate return should be amended to not claim the deduction. But it sounds like the CPA wants to play audit roulette.

So it all depends.

And, FWIW, if the check was written and in the trustee's hands on 10/15, but simply not deposited, then all is well, although the IRS might give you a hard time about it on audit.