Removal of Backup Withholding

IRS sends a taxpayer a notice that because there was a failure to pay a tax owed on an unfiled return that the taxpayer is now on backup withholding.
Taxpayer then files the return, on which a *refund* is owed, and calls IRS to ask for backup withholding to be removed.
IRS acknowledges that the initial letter asking for a failure to pay a tax owed is in error, and acknowledges that a refund was due on late-filed return. But IRS says it cannot remove backup withholding for one year after it starts backup withholding.
Is this correct? Is there any process for removing backup withholding after the initial situation prompting the withholding has been addressed?
nish
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