Jump to content
ATX Community

American Samoa


bbstacker
 Share

Recommended Posts

Potential new client with the following scenario:

They are a US company, owner is a US citizen.  All employees of the company are US citizens.  The company performs services in American Samoa for the American Samoa government.  These are short term contracts of generally less than 14 days in duration.

I'm having trouble wrapping my mind around the filing requirements.  The company will file US tax returns as well as American Samoa tax returns.  I believe that part is straight forward.  The issue that is giving me fits is what returns do the employees need to file besides US income tax returns.  I have and am reviewing Pub 570 for at least a starting point for a determination of the returns needed.  The publication refers to US citizens employed by a Samoan company.  The employees are not working for a Samoan company, it is a US company.  If the employees are required to file American Samoa tax returns it may be difficult to recruit employees and if a return is required for American Samoa it should most likely be explained to the employees that accept an employment offer.  In my mind I'm trying to compare it to an employee working for a company based in (and generally works in) State A and is sent for 10 days to State B to perform services. Under that scenario, generally the employee would have a filing requirement in each state.

I am open to all suggestions to continue my research.  I'm hopeful that someone on this board has experience with this scenario.

Link to comment
Share on other sites

If the company is performing services in Am Samoa for the local govt then then the company has nexus in AM Samoa and has to file the relevant tax returns.

It's no different than a SD company performing work in ND for a  ND local govt ?

As far as the employees go it would seem to me to be no different than a NBA player who has to file returns in every state that he plays in.

Link to comment
Share on other sites

A non-resident US citizen working in Samoa files a Samoan tax return on the money earned in Samoa.  However, the minimum income for filing single is $7200.

Any tax paid to Samoa can be claimed as a foreign tax credit on the 1040.

I would think that the clients W-2 would reflect the Samoan income.

Here is a look at the  instructions for the Samoan tax return, form 360.

https://www.efile.com/american-samoa-income-tax-return-forms/

  • Like 1
Link to comment
Share on other sites

On ‎10‎/‎31‎/‎2018 at 10:00 PM, cbslee said:

NBA player who has to file returns in every state that he plays in

I have just learned something new..................I obviously have never done a return for an athlete and have never considered the state tax issues.  

 

And that's why I love dropping by this forum occasionally.

 

 

 

  • Like 1
Link to comment
Share on other sites

" NBA player who has to file returns in every state that he plays in. "

And likely lives in, even if domicile is not a played in state.  Add some city/local taxes, possibly requiring forms as well.  (I actually gave some thought to applying for a team's payroll specialist many years ago, but as cool as it sounded, I did not need the headache, and that was limited to the payroll process only!)

  • Like 2
Link to comment
Share on other sites

  • jklcpa locked this topic
Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...