In my 10 yrs of preparing AZ tax returns, this is a first. My client recieves an "AZ Tax Correction Notice" that my client never had any AZ tax w/h yet my client 1099-R says differently. I am told by AZ that, get this, AZ cannot retrieve W-2's, 1099-misc, 1099-R etc. forms based on taxpayers SS#. I asked the person at AZ what do they do with the W-2, 1099-R etc. data that is sent to them, didnt really get an answer. First she wanted my client to sign a form 285 and I replied your kidding for my client left for cooler weather. Well I got around it, faxed AZ my client's 1099-R and 2 hours later I believe the problem is solved. In the past 10 years I have prepared tax returns with probably over 1000 1099-R's but now that I think of it, very very few had any AZ w/h. When you are correct and the Fed and/or State is incorrect, do you charge your clients extra?