I could not sell my mutual fund. The agent told me the IRS put a C Notice on my account. I filed the 1099-DIV on my 2018 returns. How can I get my money back?

[lawin7qi8]

I want to get the full amount without any withholding so I can reinvest this year. I have had no back taxes from previous years. I've filed every year and paid off any tax due. How can I get the IRS to remove the C Notice on my account?

[Anonymous]

A IRS C-Notice is sent from the IRS instructing a financial or banking institution to backup withhold on reportable payments, specifically interest, dividends, short-term capital gains, long term capital gains, and redemption’s due to a payee’s under reporting of income. IRS is stating to keep a tight reign of these issues due to many taxpayers owing back taxes.  

based on this there is no reason for the fund or brokerage to bar selling.  they do have to withhold on the sales proceeds.   if there was backup withholding on your dividends, it should have been reported on 1099-div and you report it on your return so you get credit for it.   

[Hal_Al]

Q. How can I get my money back?

A. You file a tax return, showing the withholding  from box 4 on the 1099-Div, on line 16 of form 1040 (added to any other withholding you have, e.g. on a W-2).

TurboTax (TT) will do this automatically, when you enter the 1099-Div.