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16, 1995. On Form 5500-C/R, petitioner designated the entire
$18,275 contributed as paid for the 1994 plan year.
Petitioner reported income and expense in respect of his
sole proprietorship on a Schedule C, Profit or Loss From
Business, to his Form 1040 on a calendar year basis. He applied
for both an automatic 4-month extension and an additional
extension of time to file his Federal income tax return for 1994.
The extensions were granted, and petitioner’s 1994 Federal income
tax return was therefore due on Monday, October 16, 1995. On his
1994 Federal income tax return, petitioner deducted the entire
$18,275 as a contribution to the Wenger plan.
Petitioner did not file a Form 5330, Return of Initial
Excise Taxes Related to Pension and Profit-Sharing Plans, for
1994.
In the notice of deficiency, respondent determined that for
the year in issue, an accumulated funding deficiency of $18,275
existed for the Wenger plan. Respondent further determined that
as the plan’s sponsor and person responsible for making the
contributions, petitioner was liable for an excise tax equal to
10 percent of the funding deficiency pursuant to section 4971(a),
and that petitioner was liable for an addition to tax under
section 6651(a)(1) for failure to timely file Form 5330 for the
Wenger plan.
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Last modified: May 25, 2011