TN 12 (09-98)

A. BACKGROUND

In December 1997, a new tax treaty with Ireland was ratified. Under the terms of this treaty, Social Security benefits paid to residents of Ireland are exempt from the nonresident alien withholding tax.

• The exemption was effective for benefits paid after December 31, 1997.

• In February 1998, each beneficiary was notified of the tax treaty and its effect.

• The change appeared in the payment dated March 3, 1998.

• SSA refunded any taxes withheld in 1998.

B. POLICY

The tax treaty is effective for benefits paid on or after January 1, 1998, for months after November 1983.