Springfield, IL asked in Securities Law and Tax Law for Illinois

Q: Does investment firm have to refund withholding tax that was withheld in error?

Backdoor Roth Conversion in December requested NO Withholding. Discovered 1st. week of February that they withheld 10% for taxes.

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1 Lawyer Answer

A: When you file your personal return you add the withheld tax as a credit which will be applied to tax due or refunded.

The investment firm doesn't have the money they sent it to the IRS.

Bruce Alexander Minnick agrees with this answer

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