Don't trust USAA Brokerage to file required tax documents

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I purchased a Puero Rican preferred stock, into my IRA,  a decade ago.  The brokerage firm at the time (I moved my accounts to USAA later) filed the forms as required by Puerto Rico law on my behalf to not have tax withheld since I am not a resident..  At the switchover I suddenly started having tax withheld,  I called customer service, who sent me to brokerage, who told me because Puerto Rico is not a Unied States entity, they were required to withhold and pay foreign tax on my behalf. 

 

I pointedly informed the individual that the first 3,000 dollars are tax exempt for non citizens and gave him the Puerto Rico Tax Authority web page where information and instructions are contained.  He promised to research  and get back to me.  Two weeks later I get the resonse (paraphrase): although Puerto Rico Tax instructions require brokerage firm to file for the stock holder, neither USAA or the new brokerage firm file tax forms.  If the stock holder want any foreign tax forms filed, the stock holder must utilize at financial advisor for that service..

 

And then the kicker - did I want to transfer to a USAA financial advisor.

1 REPLY

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We appreciate your question here in the Community. We would like to put you in touch with an investment specialist in the investment area who can take a closer look at this situation and offer you assistance. If you would, please message us here: http://bit.ly/U7b7Jj with your question and provide member information for us to research. We hope to hear from you soon. Thank you for your time! – Tara