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So calling the I.R.S. IS like calling JC Penny? Yikes!

I echo the sentiments of Hutch: Why shouldn't you be a little demanding when it comes to getting them to clarify the tax law? Just think of the swiftness and efficiency they will employ when issuing you a Notice of Underpayment, Penalties and Interest. I think that writing them back instead of calling might be better, though.

The guy from I.R.S. who told me to go check the proper publication signed his name and also his title: Employee Plan Specialist. I will write him again and use quotes from the publication.

I also went back and checked the I.R.S. rules which refer to what Phil was talking about. Yes, it does state that it is incumbent upon the district's plan administrator to know what is allowable as an employee deduction and contribution to a tax shelter.

It would also seem that the company accepting the tax shelter money should also know the law. I will check with them for precedents - I am sure that there have been others in the same boat who have come before.

Ultimately though, wouldn't it be the employee who would get popped with the penalties if the I.R.S. discovered an error? As the old song goes, It's No One Else But You they have in mind when they warn: "Excess contributions can result in income tax, additional taxes and penalties".

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