Incorrectly withheld tax when converting to a Roth

[Guest Steve Benjamin]

In 3/98, we incorrectly withheld 10% when converting a client's IRA to a Roth and it is now too late to get the money back from the IRS. Are we permitted to reverse & reprocess this transaction as if the withholding never ocurred and issue a corrected 1099-R to the IRS and the client?

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Steve