The tax money TD sent to the IRS is a distribution, because you did not return it to TD as part of your returned rollover within 60 days.
The distribution is taxable income. That's how it works and there's not much you can do about it.
Were you affected by COVID in 2020 in the way defined by the IRS for affected persons?
It the answer is YES, then there are things you can do if this is important to you.
