TN 5 (07-90)

NL 00601.710 Alien Tax Provision

A. Policy — Background

Under the 1983 Amendments, a nonrefundable tax must be withheld from monthly title II benefits payable to nonresident aliens after December 31, 1983, for months after November 1983.

B. Policy — Specific

1. Non-resident alien tax withheld

All notices containing benefit rate information sent to beneficiaries with an alien withholding status code (AWSC) of 5 or 6 must include a paragraph advising the beneficiary that we are withholding or continuing to withhold the nonresident alien tax.

2. Appeals involving tax withholding

The withholding of tax from a nonresident alien's benefits or the amount of tax withheld is NOT subject to SSA's administrative appeal process (see GN 05010.150).

C. Procedure

1. Non-resident alien tax withheld

Include one of the following paragraphs to advise the beneficiary:

  1. Paragraphs on awards when the AWSC is 5 or 6

    • CAPS MB82 is generated

    • MADCAP G27 is generated

    • Manually prepared award notices must include the language of the above paragraphs

  2. MADCAP G25 to beneficiaries in current pay status to advise the beneficiary that we are continuing to withhold the nonresident alien tax.

2. Appeals involving tax withholding

Advise the beneficiary that appeals involving tax liability are handled by the Internal Revenue Service.

  1. CAPS

    Paragraph MM33, with the taxation appeal information is automatically generated following MB82.

  2. MADCAP

    • Paragraph G27 already contains the appeal information.

    • Paragraph A86 should be used in notices not containing G27.

3. Overpayments involving alien tax

Because SSA does not ask these overpaid beneficiaries to repay the total overpayment (recovery of the tax part of the overpayment is waived):

  • Show the amount paid to the beneficiary, as compared to the amount which should have been paid.

  • Avoid wording such as “the overpayment is. . .”

See GN 05010.200 for information on overpayments involving alien taxation.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0900601710
NL 00601.710 - Alien Tax Provision - 05/17/2013
Batch run: 05/17/2013
Rev:05/17/2013