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.
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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