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Level 2
January 26, 2021
Question

Self-Employed client - Deferrals done from payroll in 2019 and 2020

  • January 26, 2021
  • 2 replies
  • 15 views

Self-Employed client - Deferrals done from payroll in 2019 and 2020, but bookkeeper did not transfer to the owners simple IRA account. Can the corrections for both the 2019 and 2020 Tax-Year be done at the same time (by January 31, 2021) under the self-correction program?

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2 replies

qbteachmt
Level 15
January 26, 2021

Self-employed typically refers to Sole Proprietorships, which have no payroll for that owner. It isn't possible to defer anything from their paycheck; they have no paycheck.

Payroll implies the W2 was issued, as well. It would show the data. Not depositing isn't the same as not reporting.

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sjrcpa
Level 15
January 26, 2021

The bookkeeper has control over the money?

The more I know the more I don’t know.