A Roth IRA account holder aged 48yrs passed away in 2014, the custodian moved assets to a beneficiary Roth IRA account in 2015.
This beneficiary is a non resident alien with no TIN and no income, who had submitted a W8-BEN stating zero with holding for the following reasons
a) Beneficiary is 71 yrs old
b) US has DTA treaty with beneficiary tax-resident country
c) Distribution was requested before Dec 31 of year following death
d) Distribution was from post-tax account The custodian has with held 30% of the entire balance (not just gains) while distributing proceeds from the beneficiary ROTH account.
They will provide 1042-S in March. Is this correct and can the funds be claimed as refund from IRS? This non-resident alien has no other income/deductions to report and will have to file a tax form just to get this refund.