You are on page 1of 3

American vessel

(f)For purposes of this chapter, the term “American vessel” means any vessel documented or numbered
under the laws of the United States; and includes any vessel which is neither documented or numbered
under the laws of the United States nor documented under the laws of any foreign country, if its crew is
employed solely by one or more citizens or residents of the United States or corporations organized
under the laws of the United States or of any State; and the term “American aircraft” means an aircraft
registered under the laws of the United States.

Fourth, IRC definitions…Under employment taxes

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00003121—-000-.html

Title 26, Subchapter C, Code Section 3121(e) defines United States, States and Citizen

Code Section 3121

(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.

Please note how the definitions of States and United States in the IRC Exactly match where Congress has
the power to make laws according to Article I, Sections 2 and 9. This is not a typo or oversight. It is
worded so as not to cause a conflict with the Constitution. The term State specifically excludes the 50
states. Under the term United States it would indicate that if I were a person subject to this section, I
would be liable for Federal Income Tax just as a citizen of Puerto Rico.

Check out Code Section 6103(b)5 – Confidentiality and disclosure of return and return information and
Code Section 9032(10) – Financing Presidential Campaigns to see how States and United States are
defined.

Sec. 6103. Confidentiality and disclosure of returns and return information

(5) State

The term “State” means–

(A) any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
the Canal Zone, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and

Sec. 9032. Definitions

(10) The term “State” means each State of the United States and the District of Columbia. Because these
are not taxing sections, they can include the 50 states without violating the Constitution.

security

(2)For purposes of this subsection, the term “security” means— (A)a share of stock in a corporation; (B)a
right to subscribe for, or to receive, a share of stock in a corporation; or (C)a bond, debenture, note, or
certificate, or other evidence of indebtedness, issued by a corporation or by a government or political
subdivision thereof, with interest coupons or in registered form.

(d) EmployeeFor purposes of this chapter, the term “employee” means—

(1) any officer of a corporation; or

(2) any individual who, under the usual common law rules applicable in determining the employer-
employee relationship, has the status of an employee; or

(3) any individual (other than an individual who is an employee under paragraph (1) or (2)) who
performs services for remuneration for any person—

(A) as an agent-driver or commission-driver engaged in distributing meat products, vegetable products,


fruit products, bakery products, beverages (other than milk), or laundry or dry-cleaning services, for his
principal;

(B) as a full-time life insurance salesman;

(C) as a home worker performing work, according to specifications furnished by the person for whom
the services are performed, on materials or goods furnished by such person which are required to be
returned to such person or a person designated by him; or
(D) as a traveling or city salesman, other than as an agent-driver or commission-driver, engaged upon a
full-time basis in the solicitation on behalf of, and the transmission to, his principal (except for side-line
sales activities on behalf of some other person) of orders from wholesalers, retailers, contractors, or
operators of hotels, restaurants, or other similar establishments for merchandise for resale or supplies
for use in their business operations;

if the contract of service contemplates that substantially all of such services are to be performed
personally by such individual; except that an individual shall not be included in the term “employee”
under the provisions of this paragraph if such individual has a substantial investment in facilities used in
connection with the performance of such services (other than in facilities for transportation), or if the
services are in the nature of a single transaction not part of a continuing relationship with the person for
whom the services are performed; or

(4) any individual who performs services that are included under an agreement entered into pursuant to
section 218 of the Social Security Act.

(h) American employerFor purposes of this chapter, the term “American employer” means an employer
which is—

(1) the United States or any instrumentality thereof,

(2) an individual who is a resident of the United States,

(3) a partnership, if two-thirds or more of the partners are residents of the United States,

(4) a trust, if all of the trustees are residents of the United States, or

(5) a corporation organized under the laws of the United States or of any State