Taxpayer is a non-resident alien who last resided in the US in 1990 on a work visa. She is a resident of and a citizen of Japan and is 65 and will be doing a lump sum distribution of her IRA.
My question is with Part II of the W-8BEN. It is my understanding that she would be automatically be subject to 30% backup withholding unless I could cite a specific part of IRS Chapter 3, Code 1441. Then I read somewhere else that IRA distributions are not subject to backup withholding. I called the financial institution for guidance and of course, they told me to see a tax professional. I thought that was me but it has caused me to wonder....
I would appreciate guidance and suggestions from your experience. Thanks!
My question is with Part II of the W-8BEN. It is my understanding that she would be automatically be subject to 30% backup withholding unless I could cite a specific part of IRS Chapter 3, Code 1441. Then I read somewhere else that IRA distributions are not subject to backup withholding. I called the financial institution for guidance and of course, they told me to see a tax professional. I thought that was me but it has caused me to wonder....
I would appreciate guidance and suggestions from your experience. Thanks!
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