I need to recover taxes reported on a Form 1042-S for my grandchildren who are non native, Native Americans. Under the Dual Tax Avoidance Agreement / treaty between Germany/USA, I submitted a W8-BEN to the Reservation and bank who maintains the minors account.
The reservation asked their tax accountants and said I need to recover on Form 8233 but after reading the form they state <Claiming only foreign status or treaty benefits with respect to income that is NOT compensation for personal services> to use Form W8-BEN.
Do I submit a 1040NR, 8833, W8-BEN to the IRS? Any advise is appreciated, thanks, GRV