TAXES--CORRECTIVE PROCESSING Clause Samples

TAXES--CORRECTIVE PROCESSING. In the event of correction of transactions that occurred prior to the Service Commencement Date that affect tax activity, the Company shall determine whether an adjustment should be made to participant tax reporting information. Only corrections for those transactions that do not involve an adjustment to the Federal Income Tax ("FIT") and/or the State Income Tax ("SIT") amounts will be made. If the transaction was processed incorrectly by the Company, and the Service Provider has adjusted the participant's account as of the transaction date, the Company shall make the participant whole for any material loss, and provide the Service Provider with copies of documentation showing such correction. The Service Provider will not, however, process a correction that results in an adjustment to the FIT and/or SIT amounts. If a transaction was processed correctly, and the participant wants to reinstate his/her contract, the Service Provider may reinstate the contract as of the current date. In the event the Company incorrectly withholds too much tax on withdrawals processed prior to the Service Commencement Date and a refund is requested, the Company shall issue the participant a refund in the amount of the excess withheld and notify the Service Provider to adjust the participant tax reporting information. The refund amount shall be issued by the Company within ten (10) business days from the date the refund is requested. The Company shall provide the Service Provider with copies of documentation showing the refund has been made.