Tax Law Updates | New Statutes, Regulations, and Rulings
July 15, 2010
IRS: Green Card Holder Working in a US Embassy Located Abroad Is Still Subject to Medicare and Social Security Taxes
IRS Information Letter dated March 26, 2010
INFO 2010-0089, 3/26/2010
In response to a letter-inquiry, the Internal Revenue Service (“IRS,” or “Service”) has explained that a green card holder, otherwise known as a lawful permanent resident, who works abroad at a United States embassy is subject to Social Security and Medicare taxes.
Citing the Internal Revenue Code (“IRC,” or “Code”), the IRS wrote that wages paid to United States residents for services they perform outside the United States for an American employer are subject to social security and Medicare taxes [section 3121(b) of the Code]. An individual is a resident of the United States for tax purposes if the individual is…
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