Non profit org.--tax withheld

[gman]

A church had money in a CD--No one has noticed that federal tax was being withheld until currently. The bank has instructed church to contact IRS. The IRS agent said file form 990-T. The Catholic Church is exempt from filing and I am assuming has not filed--ever..
Any suggestions on how to get the withholding back??

[JohnH]

Unless it's a lot of money, I'd consider forgetting it. Too many pitfalls associated with getting into the IRS computers' system, IMO.

The bank may also be willing to reimburse the church enough of the withholding to make it worthwhile to forget the whole thing (especially if the church lets them know it might consider moving its accounts to another bank unless there's some compromise offered.)