Becker REG Error?

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  • #1537027
    Anonymous
    Inactive

    Becker Question –

    A calendar-year individual is eligible to contribute to a deductible IRA. The tax payer obtained a six-month extension to file until October 15 but did not file until November 1. What is the latest date that an IRA contribution can be made in order to qualify as a deduction on the prior years return?

    1) August 15
    2) April 15
    2) October 15
    4) November 1

    ANSWER: April 15. For IRA’s the adjustment is allowed for a year ONLY if the contribution is made by the due date of the tax return of the individuals (april 15). The due date for filing the tax return under a filing extension is NOT allowed. (Filing extensions are not considered).

    During the lecture Tim Gearty clearly says if you get an extension you can still deduct from the prior year if you make payment before you file. I’m thrown off. Is October 15 wrong because the individual didn’t file till November 1, or are extensions not allowed?

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  • #1537032
    Missy
    Participant

    The extension is only extending time to file. The period being filed doesn't change and all the info allowed is as if the return was filed on time.

    Old timer,  A71'er since 2010.

    Finance manager/HR manager

     

     

    Licensed Massachusetts Non Reporting CPA since 2012
    Finance/Admin/HR Manager

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