In an “email private letter ruling” the IRS held that a Green Card holders who are citizens of certain tax treaty partners are not subject to self employment tax nor FICA. This exemption is common and is based upon a tax treaty called a “totalization treaty.”
The email PLR is below (by the way, your CPA should be using this free IRS service for your tax planning).
Office: IRS Chief Counsel UILC: 1401.02-00 Release Date: 5/13/2011
From: * * *
Sent: Tuesday, April 12, 2011 3:04:17 PM
To: * * *
Subject: RE: 1040NR Nonresidence alien self-employment tax
* * * one slight modification is that it is the Code that includes the Totalization Agreement exception.
You can learn more about Totalization Agreements in Chapter Two of International Taxation in America, at this link.
As you see, an email IRS private ruling is short… but effective. Your CPA should draft the request for you since he know the tax jargon. The ruling request is done on line. The IRS does a great job and replies in a few weeks. There is no Government fee for this service.