Form W-8BEN Expired and Broker Deducted $22k for BACKUP WITHHOLDING (W-9) - Can I Recover This?

[z9xBECJVS8qfmbhe5caS]

Hello everyone,

I'm reaching out to this community in a state of anxiety and looking for any advice or shared experiences that might help. I'm a non-US resident who opened a TD Ameritrade brokerage account in 2020. I did everything by the book, including submitting Form W-8BEN to ensure I was compliant with the US tax requirements for non-resident aliens.

Fast forward to 2024, and I've just discovered that my Form W-8BEN had expired this year without my knowledge, leading to a major financial headache. TD Ameritrade deducted over $22K from my account for "BACKUP WITHHOLDING (W-9)" due to the oversight. I've submitted an updated Form W-8BEN, but the funds had already been withdrawn from my account.

I am desperately seeking advice on how to recover these funds, whether through TD Ameritrade or the IRS. Has anyone here been in a similar situation? Can this be fixed, or have I completely screwed up? I'm worried about the significant amount of money involved.

I would greatly appreciate any guidance, support, or suggestions on how to approach this issue to expedite the recovery of my funds. Thank you so much for taking the time to read this and for any advice you can provide.

 

[BigDeal]

I'm pretty sure there's a reclaim process. I'll try to find the form reference, but in view of the amounts involved it might be worth paying an accountant to sort it out?

 

[z9xBECJVS8qfmbhe5caS]

I'm pretty sure there's a reclaim process. I'll try to find the form reference, but in view of the amounts involved it might be worth paying an accountant to sort it out?

Thank you for your advice. I've done some research and found that there indeed seems to be a form that can be submitted to the IRS to address this issue, although it appears quite complex. I don't currently have an accountant, but I've reached out to Deloitte in hopes they'll assist me. The entire situation has been quite unsettling for me, and I'm really just seeking some reassurance through this forum in the meantime. I've also contacted TD Ameritrade to see if they have any guidance on the matter and am awaiting their response.

 

[BigDeal]

Yes it's the 1040NR form; and I agree it seems a bit complex. I think you have to obtain a Tax Identity number as well, so a bit of a hassle, but obviously worth doing.
Good luck

 

[Rufus_Leakey]

Thank you for your advice. I've done some research and found that there indeed seems to be a form that can be submitted to the IRS to address this issue, although it appears quite complex. I don't currently have an accountant, but I've reached out to Deloitte in hopes they'll assist me. The entire situation has been quite unsettling for me, and I'm really just seeking some reassurance through this forum in the meantime. I've also contacted TD Ameritrade to see if they have any guidance on the matter and am awaiting their response.

Tax software lets you file form1040NR electronically and would likely be less expensive than an accountant.

Nonresident Alien Tax Return Software - E-file 1040NR | Sprintax Returns

NRA tax return preparation & filing software for international students, scholars & nonresident professionals. File 1040NR online. Form 8843, state tax returns & FICA refund.

www.sprintax.com