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Incentive Match Plan for Employees of Small Employers (SIMPLE),
which is not required to be filed. A copy of that document,
however, was not produced at trial, nor was any evidence offered
to show whether Northwestern Mutual Life Insurance Co.
mischaracterized the $6,222 as a SEP.
Petitioners’ 2001 Federal income tax return was signed on
April 14, 2002, and was presumably filed on that date. The
return was prepared by the attorney who represented petitioners
at trial, who is also a certified public accountant.
Both SIMPLE and SEP plans are considered and treated as
versions of an IRA. The authority for a SIMPLE plan is section
408(p). A SEP, on the other hand, is defined in section 408(k).
The differences between SIMPLE and SEP plans are not material to
the issue in this case.4
Section 408(p)(5)(A)(i) requires that the contribution to
any SIMPLE retirement account must be made not later than the
close of the 30-day period following the last day of the month
with respect to which the contributions are to be made.
4Respondent agreed that petitioners had a qualified SEP plan
during 2001 and made a contribution of $3,000 to Northwestern
Mutual Life Insurance Co. for the year 2001. In the notice of
deficiency, respondent determined that $1,567 of the $3,000
contributed was allowable as a deduction based on an information
return, Form 5498, IRA Contribution Information, SEP
contributions, filed by Northwestern Mutual Life Insurance Co.
It does not appear that a Form 5498 was issued by Northwestern
Mutual Life Insurance Co. for the $5,221 at issue in this case.
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Last modified: May 25, 2011