In July 1995, SSA is advised that A (a nonresident alien) left France and had become
a resident of Italy on March 20, 1995. Since A was a resident of a tax treaty country
(Italy), action was taken to change his AWSC to “2” effective March 1995, stop the tax withholding and refund the taxes incorrectly withheld
for March 1995 through June 1995 ($25.50 a month).
In September 1995, SSA notes that, due to a processing error, A's AWSC was changed
effective February 1995 and he was issued a tax refund of $127.50, rather than $102.00.
A is advised of the excess tax refund as follows:
In August 1995, we sent you a check for $127.50. This was a refund of the Federal
income taxes we withheld from your Social Security benefits for February 1995 through
June 1995. However,since you were not a resident of the United States or a country
with which the United States has a tax treaty prohibiting the taxation of Social Security
benefits when you were paid the February 1995 benefit, we should not have refunded
the tax for that month. We should have sent you a check for $102.00. Therefore, we
sent you $25.50 too much.
We will recover the $25.50 by withholding it from the payment you would normally receive
about October 3. The check you receive will be for $74.50. After that you will receive
your regular monthly benefit.
Action is taken to recover the $25.50 excess tax refund from the MBC of $100.00. A's
check for September 1995 is for $74.50. PHUS is annotated to show a tax withheld of
$25.50 (ETD August 1995). The MBR is corrected to show an AWSC of 5 for 2/95.
NOTE: If the error which paid the excess refund had been reflected on the MBR (i.e., an
AWSC of 5 and an AMWA of $25.50 were still shown for February 1995), no change would
have been made since the MBR alien tax field would have shown the correct AWSC and
AMWA for that month.