Simple IRA accounts and USA Patriot Act

My client was told by a person at Schwab that opening accounts on behalf of people in order to make timely deposits in compliance with the terms of their SIMPLE IRA
arrangement with Schwab is a grey area and the IRS has not given clear guidance on it as it relates to USA PATRIOT. One supervisor at Schwab said she did not think the Schwab operations department would open the accounts if my client submitted applications on the individuals' behalf because of restrictions imposed by the USA PATRIOT Act (HR 3162). My client has not been able to contact three 2005 employees so that these three persons can set up the accounts themselves as they are no longer with the company. Non elective Simple IRA contributions need to be made for these three for 2005 by September 15, 2006. Has anyone else run up against this issue?
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@aol.com wrote:

No, but think of it this way. Simple IRA's are funded into employees' IRA, meaning they must first be established in order for any funding to be accomplished. No employee, no IRA. Hence no funding. ChEAr$, Harlan Lunsford, EA n LA
<< ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.