IB withheld $100k as tax.

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?

 

There’s obviously a lot more to this story than you have written in 7 lines. This is an issue squarely between you and IB.

 

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.

 

Every story is true at ET, until proof otherwise...

 

Agreed. Now I'm going to drive my Buggati to my girlfriend's house. She just found out she lost her job as a Victoria's Secret Angel today.

 

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

 

Ahh, the power of a web search, took me < 30 seconds to find this. Should shed some light on this. Countries with tax treaties may have a lower rate but your still taxed depending on the country. If the taxed person has a green card they are taxed like a U.S. citizen.

https://tradersacademy.online/trading-topics/financial-education/us-taxes-for-us-non-residents-3

 

I had the same problem years ago. My W8BEN expired. It took a phone call if I remember to fix it.

 

What is a Buggati? Caught you... you have no Bugatti as you can't even write the name correct.

https://www.bugatti.com/