Excerpt: Question: One of our IRA owners died leaving his entire traditional IRA to his nephew. The nephew wants to take a total distribution. Do we withhold income taxes or is he on his own at tax time? Answer: As a traditional IRA custodian/trustee you are a payer required to provide any IRA owner, or beneficiary after an owner's death, with IRS Form W-4P ... prior to his/her receiving a distribution.