Chip Brown
Feb 17 2006, 07:55 PM
Client pays out a former participant in 2005 and pays 80% as a lump sum. Doesn't remit the 20% withholding to IRS. To date, no 1099-R or 945 remitted. What to do?
WDIK
Feb 21 2006, 10:49 AM
1) Prepare the Form 1099-R, immediately mail recipient's copy to home address (although this should have been done by January 31st, it is probably unlikely that there will be any ramifications), file IRS copy with 1096 by February 28th.
2) File form 945 along with appropriate payment and be prepared to pay applicable penalties.