Skip to content
ChatProjectCodes

If...

Note:

Internal Revenue Manual Part 4. Examining Process · 2026-10-03 edition · updated 2026-10-04 · United States

IRC 4973 and IRC 4974 excise tax are now handled in the discrepancy adjustment process (previously Form 5329 processing) in IRM 4.70.15, Discrepancy Adjustments. IRC 4973 and IRC 4974 adjustments are to be added to Form 4549-E (as "other taxes" ) and the issues listed on the Form 1040 RAR. Use Forms and letters listed for EP Form 1040 discrepancy adjustment to process these cases. Along with this IRM, follow IRM 4.4.14.3.2, Adjustments to Parts II trough III of Form 5329 - IRM 4.4.14.3.4 Closing IRA Adjustments from the Group to address these IRC 4973 and IRC 4974 excise tax adjustments.

IRC 72(t) tax applies to excess amounts distributed to individuals from a SEP, SARSEP or SIMPLE IRA to the extent that the individuals didn’t previously include amounts distributed in income.

If you determine a SARSEP doesn’t meet the requirements of IRC 408(k)(6):

IRC 4979 excise tax is imposed on the plan sponsor.

IRC 4979 excise tax applies to excess contributions determined for a SARSEP under IRC 408(k)(6)(A)(iii), if the SARSEP was qualified at any time.

Get a plain-English answer with a citation back to this text.

Ask AI about this code
Export this section
▸Contents — Internal Revenue Manual Part 4. Examining Process
Internal Revenue Manual Part 4. Examining Process

GoCodebook provides public access, search, citation, multilingual explanation, and practical interpretation of legally adopted building regulations. It is not a substitute for the official ICC or California code publications.