extension of the program to guam and american samoa

extension of the program to guam and american samoa Sec. 103. (a) (1) (A) The next to the last sentence of section 202(i) of the Social Security Act is amended by striking out “Puerto Rico, or the Virgin Islands” and inserting in lieu thereof “the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa”. (B) The last sentence of such section 202(i) is amended by striking out “any of such States, or the District of Columbia” and inserting in lieu thereof “any State”. (2) Section 101(d) of the Social Security Act Amendments of 1950 and section 5(e)(2) of the Social Security Act Amendments of 1952 are each amended by striking out “Puerto Rico or the Virgin Islands” and inserting in lieu thereof “the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa”. (b) Section 203(k) of the Social Security Act is amended by striking out “Puerto Rico, or the Virgin Islands” and inserting in lieu thereof “the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa”, and by striking out “Puerto Rico and the Virgin Islands” and inserting in lieu thereof “the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa”. (c) Section 210(a)(7) of such Act is amended to read as follows: “(7) Service performed in the employ of a State, or any political subdivision thereof, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, except that this paragraph shall not apply in the case of— “(A) service included under an agreement under section 218, “(B) service which, under subsection (k), constitutes covered transportation service, or “(C) service in the employ of the Government of Guam or the Government of American Samoa or any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, performed by an officer or employee thereof (including a member of the legislature of any such Government or political subdivision), and, for purposes of this title— “(i) any person whose service as such an officer or employee is not covered by a retirement system established by a law of the United States shall not, with respect to such service, be regarded as an officer or employee of the United States or any agency or instrumentality thereof, and “(ii) the remuneration for service described in clause (i) (including fees paid to a public official) shall be deemed to have been paid by the Government of Guam or the Government of American Samoa or by a political subdivision thereof or an instrumentality of any one or more of the foregoing which is wholly owned thereby, whichever is appropriate 74 Stat. 937 (d) Section 210(a) of such Act is further amended— (1) by striking out “or” at the end of paragraph (16), (2) by striking out the period at the end of paragraph (17) and inserting in lieu thereof “; or ”, and (3) by adding at the end thereof the following new paragraph: “(18) Service performed in Guam by a resident of the Republic of the Philippines while in Guam on a temporary basis as a nonimmigrant alien admitted to Guam pursuant to section 101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)).” (e) Section 210(h) of such Act is amended to read as follows: “State “(h) The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.” (f) Section 210 (i) of such Act is amended to read as follows: “United States “(i) The term ‘United States’ when used in a geographical sense means the States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.” (g) (1) Section 211(a) of such Act is amended by striking out the period at the end of paragraph (7) and inserting in lieu thereof and”, and by inserting after paragraph (7) the following new paragraph: “(8) The term ‘possession of the United States’ as used in sections 931 (relating to income from sources within possessions of the United States) and 932 (relating to citizens of possessions of the United States) of the Internal Revenue Code or 1954 shall be deemed not to include the Virgin Islands, Guam, or American Samoa.” (2) Clauses (v) and (vi) in the last sentence of section 211(a) of such Act are each amended by striking out “paragraphs (1) through (6)” and inserting in lieu thereof “paragraphs (1) through (6) and paragraph (8)”. (h) Section 211(b) of such Act is amended by striking out the last two sentences and inserting in lieu thereof the following: “An individual who is not a citizen of the United States but who is a resident of the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa shall not, for the purposes of this subsection, be considered to be a nonresident alien individual.” (i) Section 218(b)(1) of such Act is amended by inserting “, Guam, or American Samoa” immediately before the period at the end thereof. (j) (1) Section 219 of such Act is repealed. (2) (A) Section 210(j) of such Act is repealed. (B) Subsections (k) through (o) of section 210 of such Act are redesignated as subsections (i) through (n), respectively. (C) Sections 202(i), 215(h)(1), and 217(e)(1), and the last paragraph of section 209, are each amended by striking out “section 210 (m)(1)” and inserting in lieu thereof “section 210(1)(1)”. (D) Section 202 (t)(4)(D) of such Act is amended— (i) by striking out “section 210(m)(2)”, “section 210(m)(3)”, and “section 210(m)(2) and (3)” and inserting in lieu thereof “section 210(1)(2)”, “section 210(1)(3)”, and “section 210(1)(2) and (3)”, respectively; and 74 Stat. 938 (ii) by striking out “section 210(n)” each place it appears and inserting in lieu thereof “section 210(m)”. (E) Section 205(p)(1) of such Act is amended by striking out “subsection (m)(1)” and inserting in lieu thereof “subsection (1)(1)”. (F) Section 209(j) of such Act is amended by striking out “section 210(k)(3)(C)” and inserting in lieu thereof “section 210(j)(3)(C)”. (G) Section 218(c)(6)(C) of such Act is amended by striking out “section 210(1)” and inserting in lieu thereof “section 210(k)”. (3) Section 211 (a)(6) of such Act is amended to read as follows: “(6) A resident of the Commonwealth of Puerto Rico shall compute his net earnings from self-employment in the same manner as a citizen of the United States but without regard to the provisions of section 933 of the Internal Revenue Code of 1954;”. (k) (1) Section 1402(a) of the Internal Revenue Code of 1954 (relating to definition of net earnings from self-employment) is amended by striking out the period at the end of paragraph (8) and inserting in lieu thereof “; and”, and by inserting after paragraph (8) the following new paragraph: “(9) the term ‘possession of the United States’ as used in sections 931 (relating to income from sources within possessions of the United States) and 932 (relating to citizens of possessions of the United States) shall be deemed not to include the Virgin Islands, Guam, or American Samoa.” (2) Clauses (v) and (vi) in the last, sentence of such section 1402(a) are each amended by striking out “paragraphs (1) through (7)” and inserting in lieu thereof “paragraphs (1) through (7) and paragraph (9).” (l) The last sentence of section 1402(b) of such Code (relating to definition of self-employment income) is amended by striking out “the Virgin Islands or a resident of Puerto Rico” and inserting in lieu thereof “the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa”. (m) Section 1403(b)(2) of such Code (relating to cross references) is amended by inserting “, Guam, American Samoa,” after “Virgin Islands”. (n) Section 3121(b)(7) of such Code (relating to definition of employment) is amended to read as follows: “(7) service performed in the employ of a State, or any political subdivision thereof, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, except that this paragraph shall not apply in the case of— “(A) service which, under subsection (j), constitutes covered transportation service, or “(B) service in the employ of the Government of Guam or the Government of American Samoa or any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, performed by an officer or employee thereof (including a member of the legislature of any such Government or political subdivision), and, for purposes of this title with respect to the taxes imposed by this chapter— “(i) any person whose service as such an officer or employee is not covered by a retirement system established by a law of the United States shall not, with respect to such service, be regarded as an employee of the United States or any agency or instrumentality thereof, and “(ii) the remuneration for service described in clause (i) (including fees paid to a public official) shall be deemed to have been paid by the Government of Guam74 Stat. 939 or the Government of American Samoa or by a political subdivision thereof or an instrumentality of any one or more of the foregoing which is wholly owned thereby, whichever is appropriate;”. (o) Section 3121(b) of such Code is further amended— (1) by striking out “or” at the end of paragraph (16), (2) by striking out the period at the end of paragraph (17) and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(18) service performed in Guam by a resident of the Republic of the Philippines while in Guam on a temporary basis as a nonimmigrant alien admitted to Guam pursuant to section 101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)).” (p) Section 3121(e) of such Code (relating to definition of State, United States, and citizen) is amended to read as follows: “(e) State, United States, and Citizen.— For purposes of this chapter— “(1) State.—The term ‘State’ includes the District of Columbia. the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. “(2) United States.— The term ‘United States’ when used in a geographical sense includes the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. An individual who is a citizen of the Commonwealth of Puerto Rico (but not otherwise a citizen of the United States) shall be considered, for purposes of this section, as a citizen of the United States.” (q) (1) Subchapter C of chapter 21 of such Code (general provisions relating to tax under Federal Insurance Contributions Act) is amended by redesignating section 3125 as section 3126, and by inserting after section 3124 the following new section: “SEC. 3125. RETURN’S IN THE CASE OF GOVERNMENTAL EMPLOYEES IN GUAM AND AMERICAN SAMOA. “(a) Guam.—The return and payment of the taxes imposed by this chapter on the income of individuals who are officers or employees of the Government of Guam or any political subdivision thereof or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, and those imposed on such Government or political subdivision or instrumentality with respect to having such individuals in its employ, may be made by the Governor of Guam or by such agents as he may designate. The person making such return may, for convenience of administration, make payments of the tax imposed under section 3111 with respect to the service of such individuals without regard to the $4,800 limitation in section 3121(a)(1). “(b) American Samoa.—The return and payment of the taxes imposed by this chapter on the income of individuals who are officers or employees of the Government of American Samoa or any political subdivision thereof or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, and those imposed on such Government or political subdivision or instrumentality with respect to having such individuals in its employ, may be made by the Governor of American Samoa or by such agents as he may designate. The person making such return may, for convenience of administration, make payments of the tax imposed under section 3111 with respect to the service of such individuals without regard to the $4,800 limitation in section 3121(a)(1).” 74 Stat. 940 (2) The table of sections for such subchapter C is amended by striking out “Sec. 3125. Short title.” and inserting in lieu thereof: “Sec. 3125. Returns in the case of governmental employees in Guam and American Samoa. “Sec. 3126. Short title.” (r) (1) Section 6205(a) of such Code (relating to adjustment of tax) is amended by adding at the end thereof the following new paragraph: “(3) Guam or american samoa as employer.—For purposes of this subsection, in the case of remuneration received during any calendar year from the Government of Guam, the Government of American Samoa, a political subdivision of either, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, the Governor of Guam, the Governor of American Samoa, and each agent designated by either who makes a return pursuant to section 3125 shall be deemed a separate employer.” (2) Section 6413(a) of such Code (relating to adjustment of tax) is amended by adding at the end thereof the following new paragraph: “(3) Guam or American samoa as employer.—For purposes of this subsection, in the case of remuneration received during any calendar year from the Government of Guam, the Government of American Samoa, a political subdivision of either, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, the Governor of Guam, the Governor of American Samoa, and each agent designated by either who makes a return pursuant to section 3125 shall be deemed a separate employer.” (3) Section 6413(c)(2) of such Code (relating to applicability of special rules to certain employment taxes) is amended by adding at the end thereof the following new subparagraphs: “(D) Governmental employees in guam.—In the case of remuneration received from the Government of Guam or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of Guam and each agent designated by him who makes a return pursuant to section 3125(a) shall, for purposes of this subsection, be deemed a separate employer. “(E) Governmental employees in american samoa.—In the case of remuneration received from the Government of American Samoa or any political subdivision thereof or from any instrumentality of any one or more of the foregoing which is wholly owned thereby, during any calendar year, the Governor of American Samoa and each agent designated by him who makes a return pursuant to section 3125(b) shall, for purposes of this subsection, be deemed a separate employer.” (4) The heading of such section 6413(c)(2) is amended by striking out “and employees of certain foreign corporations” and inserting in lieu thereof “, employees of certain foreign corporations, and governmental employees in guam and american samoa”. (s) Section 7213 of such Code (relating to unauthorized disclosure of information) is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: “(d) Disclosures by Certain Delegates of Secretary.—All provisions of law relating to the disclosure of information, and all provisions of law relating to penalties for unauthorized disclosure of in-74 Stat. 941formation, which are applicable in respect of any function under this title when performed by an officer or employee of the Treasury Department are likewise applicable in respect of such function when performed by any person who is a ‘delegate’ within the meaning of section 7701(a)(12)(B).” (t) Section 7701 (a)(12) of such Code (relating to definition of delegate) is amended to read as follows: “(12) Delegate.— “(A) In general.—The term ‘Secretary or his delegate’ means the Secretary of the Treasury, or any officer, employee, or agency of the Treasury Department duly authorized by the Secretary (directly, or indirectly by one or more redelegations of authority) to perform the function mentioned or described in the context, and the term ‘or his delegate’ when used in connection with any other official of the United States shall be similarly construed. “(B) Performance of certain functions in guam or american samoa.—The term ‘delegate’, in relation to the performance of functions in Guam or American Samoa with respect to the taxes imposed by chapters 2 and 21, also includes any officer or employee of any other department or agency of the United States, or of any possession thereof, duly authorized by the Secretary (directly, or indirectly by one or more redelegations of authority) to perform such functions.” (u) Section 30 of the Organic Act of Guam (48 U.S.C., sec. 1421h) is amended by inserting before the period at the end thereof the following: “; except that nothing in this Act shall be construed to apply to any tax imposed by chapter 2 or 21 of the Internal Revenue Code of 1954”. (v) (1) The amendments made by subsection (a) shall apply only with respect to reinterments after the date of the enactment of this Act. The amendments made by subsections (b), (e), and (f) shall apply only with respect to service performed after 1960; except that insofar as the carrying on of a trade or business (other than performance of service as an employee) is concerned, such amendments shall apply only in the case of taxable years beginning after 1960. The amendments made by subsections (d), (i), (o), and (p) shall apply only with respect to service performed after 1960. The amendments made by subsections (h) and (1) shall apply only in the case of taxable years beginning after 1960. The amendments made by subsections (c), (n), (q), and (r) shall apply only with respect to (1) service in the employ of the Government of Guam or any political subdivision thereof, or any instrumentality of any one or more of the foregoing wholly owned thereby, which is performed after 1960 and after the calendar quarter in which the Secretary of the Treasury receives a certification by the Governor of Guam that legislation has been enacted by the Government of Guam expressing its desire to have the insurance system established by title II of the Social Security Act extended to the officers and employees of such Government and such political subdivisions and instrumentalities, and (2) service in the employ of the Government of American Samoa or any political subdivision thereof or any instrumentality of any one or more of the foregoing wholly owned thereby, which is performed after 1960 and after the calendar quarter in which the Secretary of the Treasury receives a certification by the Governor of American Samoa that the Government of American Samoa desires to have the insurance system established by such title II extended to the officers and employees of such Government and such political subdivisions and instrumentalities. The amendments made by subsections (g)74 Stat. 942 and (k) shall apply only in the case of taxable years beginning after 1960, except that, insofar as they involve the nonapplication of section 932 of the Internal Revenue Code of 1954 to the Virgin Islands for purposes of chapter 2 of such Code and section 211 of the Social Security Act, such amendments shall be effective in the case of all taxable years with respect to which such chapter 2 (and corresponding provisions of prior law) and such section 211 are applicable. The amendments made by subsections (j), (s), and (t) shall take effect on the date of the enactment of this Act; and there are authorized to lie appropriated such sums as may be necessary for the performance by any officer or employee of functions delegated to him by the secretary of the Treasury in accordance with the amendment made by such subsection (t). (2) The amendments made by subsections (c) and (n) shall have application only as expressly provided therein, and determinations as to whether an officer or employee of the Government of Guam or the Government of American Samoa or any political subdivision thereof, or of any instrumentality of any one or more of the foregoing which is wholly owned thereby, is an employee of the United States or any agency or instrumentality thereof within the meaning of any provision of law not affected by such amendments, shall be made without any inferences drawn from such amendments. (3) The repeal (by subsection (j)(1)) of section 219 of the Social Security Act, and the elimination (by subsections (e), (f), (h), (j)(2), and (j)(3)) of other provisions of such Act making reference to such section 219, shall not be construed as changing or otherwise affecting the effective date specified in such section for the extension to the Commonwealth of Puerto Rico of the insurance system under title II of such Act, the manner or consequences of such extension, or the status of any individual with respect to whom the provisions so eliminated are applicable.