I have a client that contributes to his SEP. No employees. Just himself. The 2009 return was prepared incorrectly. He runs a liquor store. He included the money that customers paid him for lottery tickets into his income. So, his gross receipts were over reported by about 40,000.00. When we amend, this will affect how much he could have contributed to his SEP. He will over contributed for 2009.
Is there an allowance for that sort of thing or will he have to pay the excess contribution penalty? Anyone have any experience with this?
Is there an allowance for that sort of thing or will he have to pay the excess contribution penalty? Anyone have any experience with this?