TN 1 (09-05)
RS 02002.090 Special Exceptions to the Coverage Rules under the Agreement with Japan
The rules for eliminating dual coverage described in RS 02002.050 through RS 02002.085 cover the great majority of situations where a worker would otherwise be covered and taxed by both the United States and Japan. However, these rules may not cover all situations, or, if applied, may have unintended results in certain cases. For this reason, a special exception provision is included in the agreement.
An employee, employer or self-employed person may request that a special exception be granted so that a worker's coverage will be assigned other than in accordance with the normal coverage rules of the agreement. The exception must result in coverage under the laws of either the United States or Japan, but not both, and both countries must agree to the exception before it can be granted. If either country does not agree with granting an exception, the worker's coverage will be determined in accordance with the applicable coverage rule of the agreement.