TN 8 (05-95)
GN 05010.070 Resumption of U.S. Resident Status
A beneficiary who has been coded as a nonresident alien keeps that status and taxes are deducted from his benefits until he/she establishes he/she is a resident alien or meets another exception to tax withholding. When he/she establishes an exception has been met, SSA or IRS refunds any taxes incorrectly withheld.
To establish/reestablish U.S. resident status, he/she must submit a signed statement of his/her residence. If the substantial presence test is applicable, it must show when he/she returned to (or entered) the U.S. and how long he/she plans to stay. He/she must also submit evidence he/she has been lawfully admitted for permanent residence or meets the substantial presence test.
2. Address Changes
When a nonresident alien changes his/her address to one of the 50 States, D.C., Guam or the NMI, U.S. resident status should not be developed unless there is a positive indication he/she has become a U.S. resident.
A change of address is not in itself sufficient basis to develop U.S. resident status.
1. Beneficiary Claims Lawful Admission for Permanent Residence
If a beneficiary claims lawful admission for permanent residence, get evidence of his/her admission as explained in GN 05010.035C.1.
a. Evidence Establishes Lawful Admission for Permanent Residence
Code the beneficiary as a U.S. resident (AWSC “3”) as of the date of lawful admission for permanent residence and take action as explained in SM 00852.001.
b. Evidence Does Not Establish Admission for Lawful Permanent Residence
Do not change his/her AWSC from that of nonresident alien.
Tell the beneficiary what evidence is needed to establish U.S. resident status for IRS purposes. Advise him/her to recontact SSA when he/she meets these requirements.
Advise him/her to contact IRS for a ruling if he/she maintains he/ she is a U.S. resident but has no evidence of this.
Send the development (e.g., SSA-795, copies of evidence, etc.) to the PC for association with claims file as explained in GN 05010.045F.
2. Beneficiary Claims to Meet Substantial Presence Test
a. Beneficiary Not Present in the U.S. for at Least 31 Days in the Current Year
Do not undertake development or change his/her AWSC from that of nonresident alien subject to tax withholding.
Tell the beneficiary about the provisions of this test and to contact SSA when he/she meets them.
b. Beneficiary Present in the U.S. at Least 31 Days in the Current Year
Develop as explained in GN 05010.045 and GN 05010.050.
Do not change the beneficiary's AWSC if U.S. resident status is not established.
Take action per SM 00852.001 to input the AWSC change if U.S. resident status is established.
Send the development to the PC for association with the claims file as explained in GN 05010.045F.