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and regulations. We reach the same conclusion herein and hold
that the elective deferrals are employer contributions and not
included in "participant's compensation". Since the elective
deferrals are employer contributions, the full amounts of the
elective deferrals are included in annual additions.9 See sec.
415(c)(2).
III. Conclusion
We now determine whether the annual additions on behalf of
Robert and Charlene Peers exceed the section 415(c) limitations.
We hold that the commissions paid to Robert and Charlene Peers as
independent contractors are not includable in "participant's
compensation" for purposes of the section 415 limitations.
Furthermore, we hold that the elective salary deferrals are
employer contributions and are not included in "participant's
compensation" for section 415 limitation purposes. The record is
not clear as to the exact amounts of salaries and wages paid to
Robert and Charlene Peers for the year ended July 31, 1987.10 We
9For the year ended July 31, 1987, no more than one-half of
the employee contribution would have been included. See sec.
415(c)(2)(B); supra note 4.
10The amount deducted by petitioner for "Salaries and wages"
($801.01) for the taxable year ending July 31, 1987, does not
match that reported by Robert and Charlene Peers as "Wages,
Salaries, tips, etc." ($0) on their joint individual income tax
returns for their taxable year ending Dec. 31, 1987. While this
could be due to the different tax years involved (year ending
July 31 versus Dec. 31), respondent, in the revocation letter and
(continued...)
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