This is an example of a tax refund paid by SSA.
B, a nonresident alien beneficiary, enters the U.S. on June 26, 1989. On July 22,
1989 she visits the FO to report her entry. She submits evidence of her lawful admission
for permanent residence on June 26, 1989.
SSA takes action to change her alien withholding tax status; but, it is too late to
stop withholding tax from the checks for June and July. Since B was a U.S. resident
on the dates the payments for those months were made (i.e., July 3 and August 3),
she is due a refund of the tax withheld from those benefits.
SSA refunds these taxes since action can be taken before the cut-off date for preparation
of the 1989 annual statement.