Pago Pago, AMERICAN SAMOA — Local Tax Office Manager Vaaimamao E. Poufa told the Senate Budget and Appropriations Committee yesterday that ASG has already received over $33 million from the US Treasury for local payments to those who qualify under the federal Advance Child Tax Credit through the American Rescue Plan Act (ARPA) of 2021.

Poufa was the sole witness who testified during the hearing on the Administration bill that would amend local tax laws, allowing the ASG Treasury to distribute money under the federal Advance Child Tax Credit program.

During the hearing, the Tax Office manager gave a briefing on local law as well as provisions for the ARPA and the need to amend local tax law, which has remained frozen since Dec. 31, 2000 — in order to adopt provisions of ARPA and federal law.  

He said there is money for American Samoa under ARPA to benefit qualified children but the Administration is awaiting approval of the pending legislation before any distribution of funds. He also said that ASG Treasury has a plan for the distribution of the Advance Child Tax Credit for American Samoa.

Under the American Rescue Plan, the payments are being distributed starting July 15th to December this year, according to the US Internal Revenue Service, which has said that the total payment is $3,600 for children ages 5 and under at the end of 2021; and $3,000 for children ages 6 through 17 at the end of 2021.

Responding to a Senate committee question, Poufa said American Samoa has received over $33 million for the Advance Child Tax Credit and the federal government has given the territory options of either monthly or quarterly payments — to disburse the funds.

The governor and the ASG Treasury has settle on two distributions — in September and December this year, he explained, and again noted that the Administration is awaiting approval of this bill. He emphasized that a child, in order to receive this funding, must have a social security number.

It was made clear during the hearing, that because the ARPA provision is applicable for a limited time period from July 15 through Dec. 31, 2021, “it is urgent that American Samoa adopt this amendment to the tax code immediately in order for citizens of the territory with children to receive these payments.”

Sen. Muagututia Tauoa queried on an issue what others in the community have raised in the past days. And that is parents residing in the U.S but claiming in their IRS tax filing, their dependents or children residing in American Samoa.

Or parents filing taxes here with the local Tax Office but claiming their children living in the US and they are being claimed by relatives in the US for filing with the IRS. 

Poufa explained that the Tax Office and ASG Treasury have agreed to reconcile its records with the IRS and US Treasury to identify any such incidents. And this is the same if, for example, the person got paid twice — through the IRS and local ASG Treasury.

Sen. Fonoti Tafa’ifa Aufata queried as to why some local tax payers have not received their stimulus checks, to which Poufa said one of the reasons is that there was problem with the tax filing, but stimulus checks are still being distributed for those without problems with their tax filings.

For information and questions, visit the Tax Office on the ground floor of the A.P. Lutali Executive Office Building in Utulei. And have on hand the tax returns along with ID and social security number.

In the House the second reading for the bill is set for today and third reading for tomorrow, Thursday, Aug. 26th, 2021. (See separate story elsewhere in this issue.)