945 deposits not made

[Guest mmc]

We recently took over a plan that has a cash balance consisting of undeposited tax withholding on distributions for 2003 and 2004.

Has anyone ever encountered this situation and what is the correction method?

[WDIK]

Since you do not mention any government correspondence, I will assume that there were no deposits made and no 945 filings for the two years in questions. Although my experience is somewhat limited compared to other forum members, I believe that you must deposit the withheld amounts, file the 945 forms and pay the penalties and interest (or get a waiver of the penalties and interest if a good enough excuse exists).

On a separate note, you may also want to verify that the 1099-R forms reflected the correct withholding.