Thank you for covering the withholding issue. My question goes a little deeper as follows: is the IRA distribution taxable to this person in the US? If not, how do they report on Form 1040NR that it is not subject to tax under the US/Australia tax treaty?
The way I read the treaty about reflief from double taxation is that the person would be eligible for a foreign tax credit in Australia for the tax paid to the US instead of it not being taxable in the US?
Thank you very much for all your help. This was very helpful to me. Thanks again.