1042 S Taxwithholding Matching

[Ftrenc]

For the past two years I have had Tax Withholding matching issues. Being a non resident alien I receive Pension Income and income from an IRA. Due to the fact that Vanguard began withholding 30% on IRA payments instead of the 15 % that they used to before 2022. In order to get a refund on the over withholding I had 1042NR s prepared. In 2022 the IRS said that a certain amount was removed from my withholding credit because it did not match their records. The amount of credit removed exactly match the amount withheld on my pension 1042s. I contacted the withholding agent and they informed me the information they provided was correct and reported to the IRS. I sent copies of all the 1042s forms I received to the IRS and since then all I get are letters saying they need another 60 days to get more information.

I again prepared a 1042NR for the 2023 tax year and again received a letter that they were reducing my withholding credit because it did not match their records. This time the amount exactly matched two of the four 1042s forms issued by my IRA withholding agent. Checking with Vanguard they said that all the 1042s were reported to the IRS. I responded to their letter and sent them copies of all the 1042s forms I used to prepare the 1040NR.

I was wondering if anyone else was experiencing similar problems ? Is there anything else I should be doing ?

[nelsona]

Just a thought: Do all your 1040-S form have the same TAX ID (either SSN or ITIN)> My spouse had an issue one year because Vanguard still had her old ITIN attached to her account, when she had an SSN for many years.

[Ftrenc]

Yes, I verified each 1042s.

Note each 1042s has a unique identifier number. You would think the IRS knows were and how much money they are owed.

[timelyagenda]

nelsona wrote:
> Just a thought: Do all your 1040-S form have the same TAX ID (either SSN or ITIN)>
> My spouse had an issue one year because Vanguard still had her old ITIN attached to https://coreballgame.io
> her account, when she had an SSN for many years.
Thanks for sharing the resources. I can find the resources easily.

[ND]

Aside from the 1042-S reporting, you've got to track down the actual $ remittance. Ask the wh agent for proof of that. Ask IRS (or check yourself on your IRS account online) if they have record of all of the 1042-s slips under your name and TIN. If they do, you know the problem's the money remittance, not the slip.

[sk8man]

I had similar issues and found a tax pro specializing in non-residents really helped. They can handle the IRS more efficiently and clarify discrepancies.