The nonresident alien withholding tax is refundable if SSA incorrectly imposed tax or imposed tax at an incorrect rate. However, whether SSA or IRS refunds the tax depends on the circumstances, as explained in GN 05010.132 and GN 05010.136.

Erroneous tax withholding can occur when:

• •

  IRS's reevaluation of a U.S. tax treaty with another country shows the tax withholding rate should be less than 15 percent.

• •

  A beneficiary who had tax withheld from his benefits establishes he is a U.S. citizen or resident.

• •

  A beneficiary changes his status to U.S. resident or becomes a U.S. citizen and the change is not processed timely.

• •

  A new tax treaty is ratified which provides for a lower withholding rate and the change is implemented on a date after the effective date of the treaty.