TN 9 (09-90)
RS 02605.042 Obtaining Proof of Exemption from U.S. Coverage
Advise a beneficiary whose work in an agreement country would otherwise be covered by U.S. Social Security, but who is excluded from coverage by an agreement, to request a foreign certificate of coverage if he has not already done so.
The foreign certificate serves as proof for the Internal Revenue Service that the person is exempt from U.S. coverage under the agreement and that no FICA or SECA tax is due on the earnings.
Without a certificate, the beneficiary may be required by IRS to pay Social Security taxes even though his work is not covered under the agreement, thus creating erroneous postings to the U.S. earnings record.
If the foreign country refuses to issue a certificate (e.g., the beneficiary is over age 65 and the foreign system does not cover workers after age 65), advise the beneficiary to write to DIPPA at the address in RS 02605.030B. and explain why the foreign country will not issue a certificate.
NOTE: DIPPA may then issue a letter which will exempt the beneficiary from payment of the FICA or SECA taxes.