ER Contrib missed tax deadline

[CJS07]

I had a client call and say they thought the company taxes were due 4/15 but were due and filed 3/15. CPA took the ER Profit Sharing contribution deduction but the client did not make the contribution until 3/22.Is there any correction needed in this situation where the deduction was taken and taxes filed prior to contributing the $ to the Plan?

[Lou S.]

Amended tax return to not take the deduction last year. Deduct the contribution in the year contributed assuming it falls within deductible limits.

[rcline46]

If the IRS finds it, they would consider the tax return fraudulent. Not a nice situation. I don't know of any fix.

[My 2 cents]

If the IRS finds it, they would consider the tax return fraudulent. Not a nice situation. I don't know of any fix.

Not if an amended return, not taking the deduction, had already been filed. Interest and penalties, not so sure.

[david rigby]

Seriously. Why isn't the plan sponsor asking the CPA?

[Lou S.]

If the IRS finds it, they would consider the tax return fraudulent. Not a nice situation. I don't know of any fix.

Not if an amended return, not taking the deduction, had already been filed. Interest and penalties, not so sure.

Yeah, no problem if amended return is filed before the IRS notices you.

But yes penalties and interest would apply if taxes are now owed because of the amended return.

But Rigby is correct, this should be addressed to the accountant who may have punted it back to the TPA because they don't know what to do in this situation.