@sjrcpa I'm still learning.

But let me put a 5-paragraph asterisk  on 

2.  No.

SEP IRA would imply wages were paid.

Therefore, a W-2 was (or W-2's were) issued to the employee(s).

On the W-2(s), was the "Retirement Plan" box checked?

If NOT, it'd be an error.

If the error(s) existed, did the employee(s) make IRA contribution(s)?

If the employee(s) did, did it go beyond the income limitation?

** Answer asterisked in case Bob was behind the (trick) question.