Justia Public Benefits Opinion Summaries

Non-resident alien citizens of China sought refunds of taxes paid under the Federal Insurance Contribution Act (FICA), 26 U.S.C. 3101, for work performed as contract workers in the Northern Mariana Islands. A corporation sought a refund of taxes paid for its contract workers in the Islands. The statutory definition of work performed in the United States contains no reference to the Islands. The Claims Court entered judgment on the pleadings in favor of the government. The Federal Circuit affirmed, noting various laws and covenants under which citizens of the Islands are to be treated as citizens of the United States. Congress intended to treat the Islands like Guam is treated for purposes of FICA and to apply both employer and employee FICA taxes to the Islands.

Following a Veterans Court remand of a claim for service benefits relating to post-traumatic stress, the veteran submitted a petition for attorney fees and expenses in the amount of $6,193. The VA found that the veteran was a prevailing party, with a net worth of less than $2,000,000, and that the VA position was not substantially justified, as required by the Equal Access to Justice Act, 28 U.S.C. 2412, but that several billing items should be denied for lack of sufficient detail. The Veterans Court agreed and reduced the fee award by $437.50, rejecting a claim that additional detail would violate attorney-client privilege. The Federal Circuit affirmed. The Act does not abrogate privilege; its specificity requirements do not require disclosure of the exact contents of communications identified on a bill and do not violate privilege. Having been publicly filed, the general nature of the claim and documents filed are not privileged.