TN 9 (04-97)
RS 02650.148 Claims for Underpayments Due Deceased Beneficiaries In Armenia
Because of the time which has elapsed since payments were last made to beneficiaries in Armenia, SSA may receive a number of claims for benefits due deceased individuals.
The underpayments due deceased beneficiaries can be quite large since there is no restriction on the accrual of benefits to citizens and nationals of the U.S. and because there is no restriction on the accrual of benefits to an individual who meets an exception to the alien nonpayment provisions.
The individual claiming the underpayment must establish:
the deceased beneficiary was entitled to any unpaid benefits (e.g., no deduction or termination events occurred for the underpayment months); and
he/she (i.e., the claimant) meets all the requirements for entitlement to the underpayment.
The U.S. Embassy in Armenia (or other U.S. Embassy or consulate if the claim is filed in another country) must establish the identity of the underpayment claimant(s) in a personal interview conducted by an Embassy representative. The interview may be conducted either at the time the underpayment claim is filed, if it is filed in the Embassy, or when the check is delivered.
2. Nonresident Alien Tax
Underpayments for months after November 1983 are subject to the nonresident alien withholding tax if the individual/estate to whom the payment is made is a nonresident alien. This is true even if the deceased beneficiary was a U.S. citizen. (See GN 05010.300 for a discussion of taxation and underpayments.)
If a request is received for payment of an underpayment due a deceased beneficiary, obtain the NH's claims folder to determine whether it appears that an underpayment exists.
1. No Underpayment Exists or the Claimant is Not Eligible
Deny the claim if:
2. Underpayment May Exist
If an underpayment may exist, obtain proof of the:
deceased beneficiary's citizenship as explained in RS 02650.144 if the deceased was a citizen of the U.S., or a country other than Armenia and the deceased would meet an exception to the alien nonpayment provisions based on that citizenship;
deceased beneficiary's entitlement to the benefits for the underpayment months;
NOTE: Generally, this will be an SSA-21, or other signed statement, completed by the underpayment claimant showing whether any termination or deduction events occurred in those months.
claimant's relationship to the deceased if he/she is filing as the spouse, child or parent of the deceased beneficiary;
citizenship and residence of the underpayment claimant(s) if the claimant(s) is a U.S. citizen or resident (or residence if the claimant(s) is a tax treaty country resident) and the underpayment involves payment for months after November 1983; and
claimant's appointment as the legal representative of the deceased's estate if this is the basis for the underpayment claim.
Legal representative of estate, GN 02315.015