Effective Dates: 02/09/2024 - Present Previous | Next

TN 19 (02-24)

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 their 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 they were born in:

  1. a. 

    One of the 50 States;

  2. b. 

    D.C.;

  3. c. 

    American Samoa;

  4. d. 

    Guam;

  5. e. 

    NMI; or

  6. f. 

    Puerto Rico.

An alien claimant who has evidence of their 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 they are a citizen of the U.S. or the area of their 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 they are a resident of the U.S. Virgin Islands.

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

If they later move to an area which is not part of the U.S. for IRS purposes determine their 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 In Citizen 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 Samoa Not subject to alien tax Not subject to alien tax Not subject to alien tax not subject to alien tax Subject to alien tax Subject to alien tax (see B.2.)
Guam Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax
NMI Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax
Puerto Rico Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Subject to alien tax Subject to alien tax (see B.2.)
U.S. Virgin Islands Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax
Outside U.S. Not in a Tax Treaty Country Not subject to alien tax Not subject to alien tax Not subject to alien tax Not subject to alien tax Subject to alien tax Subject to alien tax

C. PROCEDURE

If an assumption cannot be made under B. or it comes to the attention of the developing office that the claimant is a nonresident alien:

 

STEP ACTION
1 Explain the tax provisions to the claimant.
2 Get a signed statement if they allege an exception is met.
3 Get evidence that the exception is met.
4 Do not annotate the MBR if an exception is met.
5 Annotate the MBR to show the claimant is subject to tax witholding if the evidence does not establish an exception is met.
6 Document the file, if appropriate, to show the country of citizenship and the basis for nonresident alien status (e.g., in U.S. on a visitor's visa).
To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0205010020
GN 05010.020 - Determining the Tax Status of a Claimant in the U.S. or a Possession - 02/09/2024
Batch run: 02/09/2024
Rev:02/09/2024