My broker withheld 30% on U.S. dividends even though I thought the treaty rate should be lower. Is that usually a paperwork problem?
I live in Germany and use a foreign-owned LLC for a U.S. brokerage account. The account receives some U.S. dividends, and I expected the withholding to reflect the treaty logic tied to the foreign status on file. Instead, the broker withheld the full 30%, which makes me think either I misunderstood how the treaty applies or the documentation was not set up correctly.
I am trying to figure out where to focus first. Should I start by reviewing the W-8BEN-E file, the beneficial-owner assumptions, or the income classification itself? I would rather diagnose the real point of failure than just complain to the broker without understanding the structure.
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