Withholding in Error From Previous Tax Year

[Guest GordonJ]

I found an error on withholding on a distribution from 2004. THe 1099R is OK but taxes were withheld and sent to the IRS and state in error. Now that we are in a the tax year 2005, I know there is a way to recliam the withholding errors from previous years,

Does any of the knowledgeable folk on this board know how to petition the government (what form?) to reclaim back taxes? Help! and Thanks!

[Guest b2kates]

Are your asking on behalf of the participant or the Plan Sponsor.

The Participant only needs to file an amended return to recapture the withholding

[Guest Netminder]

I'm asking on behalf of the Plan Sponsor. The distribution was a participant loan. Unfortunately the loan was treated as a regular distributinon and there was withholding. The participant cannot file an amended return to reclaim the taxes as the 1099R tax records have been corrected to show no regular distribution in that tax year. The remaining issue is the withholding that was sent to the IRS in error. The participant should not be left without this withholding.

[david rigby]

If the 1099 is correct, isn't this a simple matter of the plan sponsor applying an adjustment the next time it remits withholding amounts?

[Guest b2kates]

It appears that the Plan sponsor needs to amend it 945 filing requesting a refund.

[Bird]

It appears that the Plan sponsor needs to amend it 945 filing requesting a refund.

I think that's what's needed. But note that the form for an "amended 945" is 941-C.