TN 10 (04-97)

GN 05010.020 Determining the Tax Status of a Claimant in the U.S. or a Possession

A. BACKGROUND

Alien residents of the U.S. Virgin Islands are not subject to alien tax withholding. IRS assumes they satisfy their U.S. tax obligations under section 28(a) of the Revised Organic Action of the Virgin Islands. This law permits an individual to meet his U.S. tax obligation by payment to the Virgin Island Treasury, rather than IRS.

B. POLICY

1. Claimant in 50 States, D.C., Guam or NMI

Assume, absent information to the contrary, a claimant is a U.S. citizen or resident and not subject to alien tax withholding.

2. Claimant in America Samoa or Puerto Rico

Assume a claimant is either a citizen of the U.S., Puerto Rico or American Samoa and is not subject to tax withholding if he was born in:

  1. One of the 50 States;

  2. D.C.;

  3. American Samoa;

  4. Guam;

  5. NMI; or

  6. Puerto Rico.

An alien claimant who has evidence of his lawful admission for permanent residence in the U.S. (see GN 00303.440) is a resident alien under the lawful permanent residency test.

3. Claimant in U.S. Virgin Islands

a. Claimant Born in an Area Listed in 2.a.-f.

Assume he/she is a citizen of the U.S. or the area of his birth and not subject to tax withholding.

NOTE: Show an AWSC of “1” if a code is needed.

b. Claimant Born in an Area Not Listed in 2.a.-f.

Assume he/she is a resident of the U.S. Virgin Islands.

NOTE: Show an AWSC of “3” if a code is needed.

If he later moves to an area which is not part of the U.S. for IRS purposes determine his tax status. (See GN 05010.010A.3. for a discussion of U.S. citizen status of individuals born in the U.S. Virgin Islands.)

4. Summary Chart

This chart summarizes the status of claimants in,and citizens of, American Samoa, Guam, NMI, Puerto Rico and U.S. Virgin Islands.

 

Claimant Living InCitizen of American Samoa But Not U.S.Citizen of Guam But Not U.S.Citizen of NMI But Not U.S.Citizen of Puerto Rico But Not U.S.Citizen of U.S. Virgin But Not U.S.Alien Resident of
American SamoaNot subject to alien taxNot subject to alien taxNot subject to alien taxnot subject to alien taxSubject to alien taxSubject to alien tax (see B.2.)
GuamNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien tax
NMINot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien tax
Puerto RicoNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien taxSubject to alien taxSubject to alien tax (see B.2.)
U.S. Virgin IslandsNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien taxNot subject to alien tax
Outside U.S. Not in a Tax Treaty CountryNot