76 STAT.]
PUBLIC LAW 87-792-OCT. 10, 1%2
to the person to whom such excess contribution was paid of the amount of such excess contribution, the amount of such excess contribution, and the net income attributable thereto, iS repaid to the owner-employee on whose behalf such excess contribution was made. If the excess contribution is an excess contribution as defined in paragraph (1)(A) or (B^ (i), or is an excess contribution as defined in paragraph (l) (C) with respect to which a deduction has been claimed under section 404, the notice required by the preceding sentence shall not be mailed prior to the time that the amount of the tax under this chapter of such owner-employee for the taxable year in which such excess contribution was made has been finally determined. " (D) REPAYMENT AFTER PRESCRIBED PERIOD.—If an excess contribution, together with the net income attributable thereto, is not repaid within the 6-month period referred to in subparagraph (C), subparagraph (A) shall not apply to an excess contribution with respect to any taxable year beginning with the taxable year in which the person to whom such excess contribution was paid repays the amount of such excess contribution to the owner-employee on whose behalf such excess contribution was made, and pays to such owneremployee the amount of net income attributable to the interest of such owner-employee which, under subparagraph (B), has been included in the gross income of such owner-employee for any prior taxable year. "(E)
817
26 USC 404.
SPECIAL RULE IF EXCESS CONTRIBUTION WAS WILLFULLY'
MADE.—If an excess contribution made on behalf of an owneremployee is determined to have been willfully made, then— "(i) subparagraphs (A), (B), (C), and (D) shall not apply with respect to such excess contribution; "(li) there shall be distributed to the owner-employee on whose behalf such excess contribution was willfully made his entire interest in all plans with respect to which he is an owner-employee; and "(iii) no plan shall, for purposes of section 404, be considered as meeting the requirements of subsection (d) with respect to such owner-employee for the taxable year in which it is determined that such excess contribution was willfully made and for the 5 taxable years following such taxable year. " (F) STATUTE OF LIMITATIONS.—In any case in which subparagraph ^A) applies, the period for assessing any deficiency arising W reason of— "(i) the disallowance of any deduction under section 404 on account of a plan not meeting the requirements of subsection (d) with respect to the owner-employee on whose behalf an excess contribution was made, or "(ii) the inclusion, under subparagraph (B), in gross income of such owner-employee of income attributable to the interest of such owner-employee under a plan, for the taxable year in which such excess contribution was made or for any succeeding taxable year shall not expire prior to one year after the close of the 6-month period referred to in subparagraph (C). "(3)
CONTRIBUTIONS FOR PREMIUMS ON ANNUITY, ETC., CON-
TRACTS.—A contribution by the employer on behalf of an owneremployee shall not be considered to be an excess contribution within the meaning of paragraph (1), if— 78135 0-63—55
Ante. p. sis.
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