nancy Posted November 8, 2019 Posted November 8, 2019 A plan fails the ADP test for 2018 and refunds are made by March 15, 2019. It is later discovered that there was an error in the test and additional refunds need to be processed. Is the excise tax due on the full refunds or only those made after March 15?
Luke Bailey Posted November 12, 2019 Posted November 12, 2019 nancy, only the amounts distributed after 3/15. See IRC sec. 4979(f)(1) and Treas. reg. 54.4979-1(c), especially Example (4). Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
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