u/Federal_Classroom45

I know you're technically allowed to file a return that includes IRA contributions that haven't been made yet (but will be made before the due dates). I've always insisted on having confirmation of the contribution before filing to avoid a missed contribution necessitating an amended return.

That being said, I now have a client who I put on extension. I'll be having them make a SEP IRA contribution for 2025, but they're not ready to make it now (they want to make it in about 2 months). I want to finish the return and get the engagement closed out because with this client in particular waiting 2 months will mean waiting 5 months.

So, would you file the return with the intended SEP IRA contribution listed/deduction taken & just include a note to the client that they need to make the contribution before 10/15/26 and outline consequences of missing it? Or do you refuse to file until you have confirmation?

Looking for how you & your firms handle these situations and any rationale/concerns I should be thinking about.

Thank so much!

I was looking at Pub 463 to figure out something else when I stumbled upon this section:

Accounting to Your Client

If you received a reimbursement or an allowance for travel, or gift expenses that you incurred on behalf of a client, you should provide an adequate accounting of these expenses to your client. If you don’t account to your client for these expenses, you must include any reimbursements or allowances in income. You must keep adequate records of these expenses whether or not you account to your client for these expenses.

If you don’t separately account for and seek reimbursement for meal and entertainment expenses in connection with providing services for a client, you are subject to the 50% limit on those expenses. See 50% Limit in chapter 2.

Surely I'm reading this wrong, but this reads to me that "IF you get reimbursement from a client for travel/gifts AND you properly account for it to them, THEN you do not have to report it as income AND you are not subject to a 50% limit (meaning you can take 100%)."

This can't be correct...is it? Is it saying that it's not subject to the 50% limit because you can't claim it at all?