Has anyone actually gone through the process of claiming a refund for overwithholding on IRA distributions as a non-resident? My financial institution just automatically withheld 30% despite me providing a W-8BEN, and now they're saying I need to claim it back from the IRS directly.

Just wanted to share my experience as someone who went through IRA withdrawals as a non-resident alien last year. The key thing I learned is that timing matters a lot - if you contributed to your IRA while you were a US tax resident (which sounds like your case with the H1B), those contributions may be treated differently than if you had contributed as a non-resident. I'd strongly recommend getting professional help for your specific situation. The treaty benefits with India can be significant, but the application process is tricky. My financial institution initially applied the full 30% withholding even though I was entitled to the reduced treaty rate. I had to file Form 1040NR to get the overwithholding back, which took about 8 months. One important tip: make sure to file your W-8BEN with your IRA custodian BEFORE you make any withdrawals. Even if they mess up the withholding initially, having it on file helps establish your treaty claim later. Also, keep detailed records of when you made each contribution and your tax residency status at those times - the IRS may ask for this information. For HSA withdrawals, the rules are even more complex because of the medical expense qualification requirements. You'll want to be very careful about documentation there.

This discussion has been incredibly valuable for understanding W9 requests in product-based businesses. As someone who's been running a small manufacturing LLC for the past three years, I can confirm that W9 requests from clients are quite common, even for straightforward product sales. What I've found helpful is maintaining a standard operating procedure for these requests: I keep a completed W9 template ready to send, respond within 24 hours of receiving the request, and always include a brief professional note like "Please find the completed W9 form attached for your vendor records." This approach has helped build trust with larger corporate clients who appreciate prompt responses to their administrative requirements. One thing I'd add to this conversation is that providing W9s has actually opened doors for additional business opportunities. Several clients who initially requested W9s for product purchases later contracted us for custom design services, and having our tax information already on file made those transitions seamless. It's worth viewing these requests as relationship-building opportunities rather than administrative burdens.

As a newcomer to this community, I found this entire discussion incredibly helpful! I run a small retail business and just received my first W9 request from a corporate client who purchased inventory from us. I was initially confused because I thought W9s were only for contractors, but reading through everyone's experiences has really clarified things for me. What strikes me most is how this seems to be such standard business practice, yet it's not something you learn about until you actually encounter it. The advice about keeping a pre-filled W9 template ready to go is brilliant - I'm definitely going to set that up today. I also appreciate the perspective from Ryan who handles vendor management, as it really helps understand why companies have these blanket policies. One question I have after reading through everything: for those of you who've been doing this for a while, do you find that certain types of companies (size, industry, etc.) are more likely to request W9s than others? I'm trying to anticipate which of my other clients might make similar requests so I can be proactive about it.

Just a quick question - how different is the MICR number from your actual account number? Sometimes part of the MICR includes your account number, so there's a small chance it might work if your actual account number is contained within the MICR sequence.

Don't beat yourself up too much about this - it's actually a pretty common mistake! I've seen several people in tax prep forums make similar errors with MICR numbers, routing numbers, and account numbers. The good news is that while it's frustrating, it's not going to cause any major problems beyond the delay. One thing to keep in mind is that when the IRS switches to sending a paper check, make sure your mailing address is current with them. If you've moved recently, you might want to file a Form 8822 (Change of Address) to ensure the check gets to you. The last thing you want is for the check to get lost in the mail on top of the direct deposit issue. Also, for future reference, most banks have their routing and account numbers clearly listed in online banking or on deposit slips, which tends to be more reliable than trying to read the MICR line. Live and learn!

This thread has been incredibly enlightening! As another newer preparer, I was making the same assumption that "optional" means "skip it to save time and money." But the collective wisdom here really shows the value of thinking beyond just compliance. What I'm taking away is that tax preparation isn't just about meeting minimum requirements - it's about providing comprehensive service that anticipates future client needs. The point about partnerships losing exemption status as they grow is particularly important. If you're already in the habit of preparing complete returns, you don't have to change your process or explain gaps in historical data later. I'm also struck by how many practical benefits these "optional" schedules provide - from partner education to loan applications to dispute resolution. These are real-world scenarios that go way beyond the technical tax compliance question. One follow-up thought: for those of us building our practices, positioning ourselves as providers of comprehensive financial information (rather than just minimum compliance) seems like a competitive advantage. Clients who understand their business financials better are probably more likely to seek additional advisory services too. Thanks to everyone who shared their experience - this kind of practical insight is exactly what newer practitioners need to hear!

This discussion has been incredibly valuable! As someone who's been preparing partnership returns for about 8 years, I want to add one more practical consideration that hasn't been mentioned yet. I've found that completing these "optional" schedules also helps during IRS correspondence examinations. Even though the partnership may be exempt from filing them, when the IRS sends information document requests (IDRs) during an exam, they often ask for balance sheet information and book-tax reconciliations regardless of the exemption status. If you've already prepared Schedules L, M-1, and M-2, you can respond to these requests immediately. If you haven't, you're scrambling to recreate this information under examination pressure, which never looks good to the examining agent. I had a client a few years ago where this exact situation arose. The partnership qualified for the Question 4 exemption, but during a routine examination, the IRS requested balance sheet details. Because we had prepared Schedule L voluntarily, we were able to provide comprehensive responses within days rather than weeks. The examining agent actually commented on how well-organized our documentation was. From a risk management perspective, the small additional effort upfront can save significant time and stress if issues arise later. Plus, it demonstrates to clients that we're thinking strategically about their long-term needs, not just current year compliance.

Something nobody's mentioned yet - if your sister didn't get an EIN (tax ID) for the trust, that's a bigger issue than the bank account. The trust is considered a separate taxpayer from both your sister and the original trustmakers (your parents). Without an EIN, how is she planning to file the trust tax return? And without a trust tax return, how will she generate legal K-1s? This might be why she's delayed getting you the K-1.

I went through something very similar when my father passed and I was named successor trustee. The stress of not knowing if you're handling everything correctly is overwhelming, especially when you're already grieving. From my experience, your sister's approach creates unnecessary complications and potential liability issues. Even though it's not strictly illegal, mixing trust funds with personal accounts makes proper accounting much more difficult and could cause problems if the IRS ever audits the trust. Here's what I learned the hard way: Always get an EIN for the trust immediately after the grantor's death, open a separate trust checking account, and keep meticulous records of every transaction. When I sold my dad's house, I made sure the proceeds went directly into the trust account, then issued checks from that account to beneficiaries with clear documentation. The good news is that since you're the beneficiary, your main concern is getting that K-1 form so you can properly report your share on your personal return. The burden of proper trust administration falls on your sister as trustee. If she can't provide accurate documentation, that becomes her problem with the IRS, not yours. I'd strongly suggest having a gentle but firm conversation with your sister about getting professional help to clean this up properly. It's worth the cost to avoid potential headaches down the road.