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Failure of an SCorp to pay safe harbor and profit sharing

  • 1.  Failure of an SCorp to pay safe harbor and profit sharing

    Posted 06-06-2022 04:47 PM
    My client is an S-Corp and was told to make their safe harbor and profit sharing contribution by 3/15/22 as this was the filing date of the 1120S.  No extension was filed. The profit sharing and safe harbor expense was taken on the 2021 tax return.  Today we find out that my client forgot to make the actual payment to the plan and nothing has been paid in   even though the expense was taken in 2021.  The plan administrator will take the profit sharing/safe harbor contribution in 2022 and says the plan is still compliant.  The deposit is being made tomorrow into the plan.
     Though the deposit was made after the filing date it was made into the plan - just a few months late. Do we have to amend the return? Has anyone encountered this before and how was it handled?
    Thanks in advance for your feedback!

    Christine Murphy
    Bellmore NY

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