Opinion ID: 214076
Heading Depth: 2
Heading Rank: 2

Heading: fica

Text: FICA is an employment tax under the Internal Revenue Code. The FICA statutory scheme generally requires payment of taxes by employees on wages received and payment of taxes by employers on those same wages. The former are assessed under I.R.C. § 3101, the latter under I.R.C. § 3111. In each instance, the taxes are assessed on wages paid or received with respect to employment (as defined in section 3121(b)). I.R.C. §§ 3101, 3111. As used in this context, employment means any service, of whatever nature, performed . . . by an employee for the person employing him, irrespective of the citizenship or residence of either, . . . within the United States.  I.R.C. § 3121(b) (emphasis added). The term United States is defined for FICA purposes as follows: The term `United States' when used in a geographical sense includes the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. I.R.C. § 3121(e). Notably, FICA's definition of United States does not explicitly include the CNMI. This omission formed the basis for Plaintiffs' contention that the CNMI is not within the United States for purposes of I.R.C. § 3121(b) and thus that FICA taxes are not owed on wages received or paid with respect to employment in the CNMI. Op. at 266.