IB withheld $100k as tax.

T

trend2009

I managed a few accounts for my friends. I received API warning from IB asking the tax form of one account must be updated by the end of day,otherwise 24% tax will be withheld. My friend lives in a country with tax treaty with US, he is not required to pay US IRS. he did update his tax form that day. But the following day, 100k was deducted from his account. Anyway to reclaim the fund for him?
 
So do you think a non resident non citizen is not liable for income from us sources?
Possibly a wrong assumption. Ib wd have sent to irs. Talk to the support agent.
 
For the sake of discussion, let's assume this story is true, as this is ET you never know (well sometimes you do). Hopefully the account is in his name and not yours and there is a custodial agreement in place. In any event with 100k in question, it would be worth consulting with a tax attorney and not just random anonymous posters.
 
speedo said:
For the sake of discussion, let's assume this story is true, as this is ET you never know (well sometimes you do). Hopefully the account is in his name and not yours and there is a custodial agreement in place. In any event with 100k in question, it would be worth consulting with a tax attorney and not just random anonymous posters.
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Every story is true at ET, until proof otherwise...
 
trend2009 said:
I managed a few accounts for my friends. I received API warning from IB asking the tax form of one account must be updated by the end of day,otherwise 24% tax will be withheld. My friend lives in a country with tax treaty with US, he is not required to pay US IRS. he did update his tax form that day. But the following day, 100k was deducted from his account. Anyway to reclaim the fund for him?
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Since when brokers withhold money for taxes?

Their only job is to provide forms for you to file. Something ain't right with this story
 
trend2009 said:
I managed a few accounts for my friends. I received API warning from IB asking the tax form of one account must be updated by the end of day,otherwise 24% tax will be withheld. My friend lives in a country with tax treaty with US, he is not required to pay US IRS. he did update his tax form that day. But the following day, 100k was deducted from his account. Anyway to reclaim the fund for him?
More...
I had the same problem years ago. My W8BEN expired. It took a phone call if I remember to fix it.
 
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