TN 6 (07-90)

Procedure

1. Beneficiary in the U.S.

Code the beneficiary as a U.S. resident (AWSC “3”). Diary the case for July 1 of the next year to verify the continuation of the beneficiary's resident status.

When the diary expires, contact the beneficiary to verify his resident status. Ascertain whether he is still in the U.S. and the number of days he has been in the U.S. in the current year.

a. Beneficiary Continues to Meet the Substantial Prescence Test

Rediary the case for July 1 of the following year.

NOTE:  Annual contacts (to verify the test is met) continue as long as the beneficiary stays in the U.S. and this is the only way he meets an exception to tax withholding.

b. Beneficiary No Longer Meets the Substantial Presence Test

• Advise beneficiary of provisions of this test and to let SSA know when he meets test;

• Document file to show why test is no longer met;

• Take action to start tax withholding.

2. Beneficiary Outside the U.S.

Code the beneficiary as a U.S. resident (AWSC 3). Diary the case for the first day of the second month after the month in which he plans to return to the U.S. (e.g., September 1 if he will return in July).

When the diary expires, contact the beneficiary to verify he continues to meet this test.

Rediary the case for contact in the next year (i.e., the first day of the second month after the month in which he plans to return to the U.S.) if the beneficiary continues to meet the substantial presence test.

Take action as explained in 1.b. if beneficiary no longer meets substantial presence test.