TN 6 (07-90)
GN 05010.150 Protests on the Withholding Tax Status or the Tax Amount
In withholding this tax, SSA administers an Internal Revenue Code (IRC) provision. Thus, the withholding and the amount of the tax are not subject to SSA's appeal process. SSA does, however, correct errors or make changes based on additional evidence.
1. Beneficiary Complaint
Ascertain the basis for the beneficiary's complaint. If it is the fact of tax withholding and not that he is a nonresident alien, explain the tax provisions and that SSA is just a withholding agent.
Advise the beneficiary to refer further questions about his tax status to IRS (see GN 05010.136C.2.)
If there has been an error in the computation of the tax, follow instructions in SM 00852.001 to correct the withholding amount. If too much tax was withheld, see GN 05010.130 for instructions about issuing a tax refund. If not enough tax was withheld, see instructions in GN 05010.110.
2. Beneficiary in U.S. Alleges U.S. Citizenship or Residence
Develop U.S. citizenship or residence (see GN 00303.300, GN 05010.010A.3. and GN 05010.070 as appropriate). Change the AWSC if the evidence establishes U.S. citizenship or residence. If the beneficiary is due a tax refund, see GN 05010.130 for instructions.
3. Beneficiary Outside U.S. Alleges Status Change and Not Subject to Tax
Develop per existing instructions. Except as provided below, mark the development “Alien Tax Protest” and forward to OIO.
EXCEPTION: FOs and claims-taking FSPs with direct input facilities, input AWSC changes via the Alien Tax Update (PELF) screen in POS per MSOM T2PE 003.014, if a:
Beneficiary has moved to a tax treaty country and the evidence establishes resident status; or
Child beneficiary has become a U.S. citizen based on the recent registration of his birth (i.e., registration of the birth of a U.S. citizen) at a U.S. Embassy or Consulate.
NOTE: Retroactive changes cannot be input via POS.
OIO reviews the claims file and “Alien Tax Protest” material. It changes the AWSC if the evidence supports a change and notifies the beneficiary.
If the evidence is not sufficient to change his withholding status, OIO advises the beneficiary of this and his right to go to IRS for a ruling on his status.