IRS is responsible for the Social Security and Medicare taxation provisions under
the Internal Revenue Code (IRC). Under the authority of Chapter 21 of the IRC, IRS:
Administers the Federal Insurance Contributions Act (FICA), including the mandatory
Social Security and Medicare provisions concerning services performed by State and
local government employees;
Assures proper reporting and collection of Social Security and Medicare taxes by State
and local government employers under the FICA through examination and other compliance
Interprets the FICA provisions applicable to State and local governments through published
guidance (e.g., regulations, revenue rulings, revenue procedures, private letter rulings,
and field directives).
Because IRS is responsible for administrating the provisions of FICA, SSA staff should
refer all questions regarding the reporting and payment of FICA taxes to IRS.
Additionally, with respect to the Omnibus Budget Reconciliation Act of 1990 (OBRA90)
provisions on mandatory Social Security coverage under Section 210 of the Act, SSA
staff should refer all specific questions to IRS regarding:
What constitutes membership in a State or political subdivision employer's retirement
system under Section 210?; and
What is a retirement system for purposes of Section 210?