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Discussion Forum Index --> Tax Questions --> SIMPLE IRA & Successor Employer Question...
New Note Finder (talk|edits) said:
| 13 September 2007
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| Here's the scenario--for the first six months of the year, a business operated as a sole proprietor with ten employees; as of July 1, he became an S-Corp--with the same ten employees--and established a SIMPLE IRA. Can an argument be made that since he is a successor employer, that the wages paid to his employees for the first six months of the year count toward the total compensation requirement ($5,000)?
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JR1 (talk|edits) said:
| September 13, 2007
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| Not an argument, rather, what's the rule on that? I don't know off hand, good luck researching it...
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Death&Taxes (talk|edits) said:
| 13 September 2007
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| I am swimming too, but the logic would say "yes" for to meet the test, would not the prior year also come into play?
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WesR (talk|edits) said:
| 13 September 2007
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| Hi employer includes related employers ie contolled groups, trades or business under common control etc. check notice 94-4. I didnt spend alot of time just a quick search on RIA. I bet the answer is yes. bye
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