Tax Return has been filed but contribution has not been fully made

[truphao]

Sole-prop situation with the CB Plan.  The minimum for 2022 is 160K, the client has made only 150K contribution in 2022 for 2022 Plan Year.  CPA went ahead and has already filed the tax return for 2022 without consulting with anyone.  Per my conversation with the advisor, the "missing" 10K has been deposited today.

My understanding that reliance on revenue ruling 76-28 - https://www.taxnotes.com/research/federal/irs-guidance/revenue-rulings/rev.-rul.-76-28/dcb4  still secures the deduction of that 10,000 for 2022 tax year as long as the tax return is refiled.

1) Anything I might be missing here?

2) Reliance on 76-28 requires a designation in writing by Sponsor to Plan Administrator of that contribution as being made for 2022.  Does anyone has a sample of such language they would be willing to share?

3) Tax return will have to be amended - I do not believe it needs to be amended by 4/15 and can be really amended at any point.   Thoughts? 

[Lou S.]

Since the contribution was made by the non extended due date the client could do one of 2 things - file an amended tax return for 2022 claiming the deduction or designate the $10,000 for minimum funding of 2022 but deduct as 2023 contribution.

But I'm not a CPA so should confirm that with with a CPA.

As for designating it I think it can be something as simple as "I sole prop. designate $10,000 contribution on 4/6/2023 for minimum funding standard for the 2022 Plan year and for 202x for tax deduction purposes. Signed and dated.

Where x = 2 or 3.

 

[truphao]

Lou, thank you for confirming my logic - much appreciated.

[thepensionmaven]

Agree.

[ugueth]

I don't think the return has to be refiled in this case. IRC 404(a)(6) states that the contribution has to be made before the due date for filing the return. In this case, the return was filed before the due date, and if I understand correctly, the full contribution of $160,000 claimed on the return was made before the due date -- perfectly acceptable even though a portion of the contribution was made after the date the return was filed.

Rev. Rul 76-28 appears to deal with the case where a contribution of one amount is claimed on the return, but a larger contribution is made before the due date of the return. That would require a re-filing of the return in order to claim the larger amount. If the return by the accountant only claimed $150,000, then I agree with the analyses above.

[truphao]

accountant originally claimed only 150K.   The return has already been refiled.  Thank you all for great feedback.