Ezel / IRS Rulings / 201101010

CCA 201101010: A totalization agreement can make self-employment tax apply to some nonresident aliens

Number
201101010
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Net Earnings From Self-Employment
Topics
Other topics
Code sections
§ 1402
Ruling dated
October 5, 2010
Publicly released
January 7, 2011
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

An IRS matter asked about a visa category and whether a nonresident alien owes self-employment tax. The Office of Chief Counsel advised that nonresident aliens generally do not owe SECA tax, but an applicable totalization agreement can change that result. The short advice identifies the international social security agreement as the relevant exception. It does not identify the visa or provide additional facts about the individual.

Ruling snapshot

  • Question: Can a totalization agreement cause a nonresident alien to owe self-employment tax?
  • Outcome: Advice given
  • Key authorities: IRC § 1402

Full text (IRS public release)

ID: CCA_2010100518201141 Number: 201101010
Release Date: 1/7/2011
Office: ------------------------------
UILC: 1402.01-00

From: ---------------
Sent: Tuesday, October 05, 2010 6:20:12 PM
To: ----------------------
Cc: -------------------------------------------------------------------
Subject: RE: Quick question

I assume this is a type of visa? While NRAs don't generally owe SECA tax, they do if there is an
applicable Totalization Agreement.

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