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provides that the “two and one-half month period may be extended
for not more than six months”. That language sets a definitive
time limit.
Moreover, the legislative history of section 412 does not
support petitioner’s “safe-harbor” argument. The conference
report states that
the contribution may relate back to the plan year if it is
made within 2-1/2 months after the close of that plan year,
plus any extension granted by the Internal Revenue Service
up to an additional 6 months (for a maximum of 8-1/2 months
after the end of the year). [H. Conf. Rept. 93-1280, at 290
(1974), 1974-3 C.B. 415, 451; emphasis added.]
The use of the word “maximum” is also definitive. The
legislative intent was to create a fixed time period in which
deemed contributions would be allowed.
Petitioner contends that section 412(c)(10)(B) should be
read to allow deemed contributions beyond the 8-1/2 months
because of our holding in Aero Rental v. Commissioner, 64 T.C.
331 (1975). In Aero Rental we held that the statutory timeframe
of section 401(b) for retroactive amendments acted as a safe-
harbor and was not a definitive deadline. The taxpayer in Aero
Rental initiated a stock bonus plan in December 1969. The
taxpayer requested a determination that the plan qualified under
section 401 in June 1970. After extended negotiations with the
Commissioner, the taxpayer amended the plan to comply with the
Commissioner’s position in July 1971. But the Commissioner
disallowed the taxpayer’s deductions for plan contributions for
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