SEP IRA filing deadline
Can a client make SEP IRA contributions for 2014 before 4/15/15, even though they already filed 2014 taxes? I realize this would entail filing an amended return for 2014.
Can a client make SEP IRA contributions for 2014 before 4/15/15, even though they already filed 2014 taxes? I realize this would entail filing an amended return for 2014.
Permalink Submitted by Levi Brandriss on Wed, 2015-04-08 19:35
Ammended return – can go up to october 15
Permalink Submitted by John Peterson on Wed, 2015-04-08 22:03
Agree that SEP contribution can still be made by 4/15 (with amended 1040) but disagree as to 10/15 extended deadline since 1040 was filed before 4/15 deadline and was not put on extension
Permalink Submitted by David Mertz on Thu, 2015-04-09 12:18
Because the original return was timely filed, the SEP-IRA contribution made up until October 15 and a 2014 amendment filed pursuant to section 301.9100-2. Section 301.9100-2 allows statutory elections to be made up until the extended due date of the tax return as long as the original return was timely filed. If the amendment is filed after April 15, write “Filed pursuant to section 301-9100-2” on the amendment. https://www.law.cornell.edu/cfr/text/26/301.9100-2#b
Permalink Submitted by John Peterson on Thu, 2015-04-09 22:30
Repectfully disagree. It’s not an issue of whether an amended tax return can be filed but whether the SEP contribution was made by the due date (including extensions) of the original return. Since this taxpayer has already filed once they cannot get an extension for a return that’s already been filed so they need to make the contribution by 4/15. They can file the amended return claiming the deduction after 4/15 if they like.From the IRS FAQs:“When must I deposit the contributions into the SEP-IRAs?You must deposit contributions for a year by the due date (including extensions) for filing your federal income tax return for the year. If you obtain an extension for filing your tax return, you have until the end of that extension period to deposit the contribution, regardless of when you actually file the return.If you did not request an extension to file your tax return and did not deposit the SEP plan contributions by the filing due date for that return, you are not allowed to deduct any SEP plan contributions on that year’s return. The contributions may be deducted on the following year’s return.”
Permalink Submitted by David Mertz on Fri, 2015-04-10 19:56
Given that FAQ, I would follow the FAQ. However, I’m not sure why a SEP-IRA contribution would not be a regulatory or statutory election to which § 301.9100-2(b) applies, so I’m not satisfied that the FAQ is correct. But who am I to argue with the IRS. I have seen posts by Alan-iracritic (alan_oniras) from a few years ago also suggesting that § 301.9100-2(b) would apply under these circumstances, so I don’t think I am alone in my belief (unless more recent information has come to light that I’m not aware of): https://irahelp.com/forum-post/17863-extension-vs-amendment