Extension request

[hubison]

Question for the community.  We filed an extension for an S-corp to permit them the time to make their profit sharing contribution.  The return was completed and the 8879 sent out and returned by the client.  The return was then released by the admin dept. seeing that the 8879 had been returned but the contribution has not been made yet.  Since the return was electronically filed before  3/15, does this void the extension?  Does the taxpayer still have until 9/15 to make the contribution or even 3/15? Any thoughts or direction would be appreciated.  Thanks.

[taxref]

I have not dealt with this issue for some time now, but you would certainly be safe making the contribution no later than 3-15.

Back when I did have clients with retirement plans, though, the contribution could be made until the extended due date.  Since you have already extended through 9-15, you should have until that date.  My only caveat would be that I have not been keeping up closely in this area, and its always possible that has changed within the last few years.  Consequently, you should not rely on my advice regarding the 9-15 date.

[mwcpa]

Generally, if a tax return is filed before the due date, the due date is not deemed to have been extended for purposes of determining when the pension contribution is required to be made.

The pension should be funded BEFORE the tax return is filed.

In the case noted, since the tax return is filed, the pension needs to be funded by March 15, 2014 in order to be provided a deduction on the 2013 tax filings.  If the pension is funded after March 15 it may not count as a 2013 deduction.