Incorrect Withholding at IRA Withdrawal

[Guest just started...]

Here's a situation I'm currently working with.

An individual with an IRA through a bank made a withhdrawal in late 2008. The individual requested that $2200 be withheld. Instead, due to a bank typo, only $200 was withheld.

What options does the bank have to correct this?

Can the individual pay the bank back the 2000 to have that count as withholding and then have the bank issue a corrected 1099-R?

thanks!

[jevd]

Here's a situation I'm currently working with.

An individual with an IRA through a bank made a withhdrawal in late 2008. The individual requested that $2200 be withheld. Instead, due to a bank typo, only $200 was withheld.

What options does the bank have to correct this?

Can the individual pay the bank back the 2000 to have that count as withholding and then have the bank issue a corrected 1099-R?

thanks!

At this point it isn't likely that the bank can correct the 2009 withholding. It might be easier for the individual to pay the IRS directly when he pays his taxes. I believe the deadline for them to report withholding for 2008 is today. Financial institutions are generally reluctant to change withholding records after the tax year is over.

[Guest mjb]

Here's a situation I'm currently working with.

An individual with an IRA through a bank made a withhdrawal in late 2008. The individual requested that $2200 be withheld. Instead, due to a bank typo, only $200 was withheld.

What options does the bank have to correct this?

Can the individual pay the bank back the 2000 to have that count as withholding and then have the bank issue a corrected 1099-R?

thanks!

At this point it isn't likely that the bank can correct the 2009 withholding. It might be easier for the individual to pay the IRS directly when he pays his taxes. I believe the deadline for them to report withholding for 2008 is today. Financial institutions are generally reluctant to change withholding records after the tax year is over.

He can file his 2008 tax return by 4/15 and pay all taxes due or he can get an extension and include the $2000 payment. Bank cannot correct its mistake because it no longer has the funds in its possession.