There's a debate going on about a question to which I don't know the answer, so I'm staying out of it. But curious. Thought some of you may have an opinion...

Corporation with 2003 fiscal year makes contribution in February of 2004, intended to be a deduction for 2003. Accountant files 2003 tax return and forgets to take the deduction. Question is, can they file an amended return for 2003 to claim the deduction?

1 faction says yes, don't be ridiculous, of course you can. 1 faction says no, the corporate return can't be amended to claim the deduction for 2003. Neither faction is presenting any cites or anything to reinforce their opinion.

I have no firm opinion, although I went on the IRS forms and publications website and gave a quick scan through the 1120 and 1120x instructions. There was nothing that jumped out at me that appeared to prohibit filing an amended return to claim the deduction for 2003. And frankly, I can't see any common sense reason why you couldn't. Anybody know the answer to this? Thanks.

This is one of those "trying to prove the negative" of someone else's statement that doesn't make sense. The real question here is to ask those that think you can't do it "why not?"

I can't imagine any reason why you can't file an amended return.

Thanks. I will ask this, although I suspect the silence will be deafening.

See Rev. rul 76-28 for rules for claiming a deduction for contribution made to plan. Only restriction is that employer cannot revoke a deduction after it has been claimed on tax return. Client has nothing to lose by filing amended return and claiming the deduction.

My recollection of 76-28 is that the employer needs to at least have told the trustee or plan administrator (in writing) what year the contribution relates to prior to the due date of the return. If that was done, then you should be able to go back and amend your return to claim the deduction.