Hi people, I have a situation that I haven't dealt with before:
If a taxpayer made the maximum contribution to a SEP in 2007, and then files an amended return which results in a change to net income on Schedule C for that year, what are the options for modifying the SEP contribution? (i.e. If AGI decreases, Is there any way to avoid a penalty for making the excess contribution? AND If AGI Increases, is it possible to increase the SEP contribution amount retroactively?
Thanks
If a taxpayer made the maximum contribution to a SEP in 2007, and then files an amended return which results in a change to net income on Schedule C for that year, what are the options for modifying the SEP contribution? (i.e. If AGI decreases, Is there any way to avoid a penalty for making the excess contribution? AND If AGI Increases, is it possible to increase the SEP contribution amount retroactively?
Thanks