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petitioner contends, in effect recalculates anticipated
contributions, which defeats Congress' intent in using the word
"anticipated". Petitioner is mistaken on 2 counts. First,
except to the limited extent discussed below, none of
petitioner's contributions qualify for section 404(a)(6)
treatment. Second, petitioner fails to comply with the
individual deduction limits of section 404(a)(1)(A) and section
413(b)(7).
Section 404(a)(6) states:
Time When Contributions Deemed Made.-- For purposes
of paragraphs (1), (2), and (3), a taxpayer shall be
deemed to have made a payment on the last day of the
preceding taxable year if the payment is on account of
such taxable year and is made not later than the time
prescribed by law for filing the return for such
taxable year (including extensions thereof). [Emphasis
added.]
If a taxpayer fulfills the above conditions, section 404(a)(6)
automatically applies; no election is required or contemplated
under the statute. The operative language is "shall".
In arguing that it has complied with the foregoing
conditions, petitioner relies heavily on Rev. Rul. 76-28, 1976-1
C.B. 106, which offers guidelines to interpret the meaning of the
phrase "on account of". In pertinent part, the ruling states:
a payment made after the close of an employer's taxable
year to which amended section 404(a)(6) applies shall
be considered to be on account of the preceding taxable
year if (a) the payment is treated by the plan in the
same manner that the plan would treat a payment
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