FSMSSA vs. Weno Municipality - Civil Action No. 2001-1010

On August 28, 2002, the FSM Supreme Court ruled in favor of FSMSSA and against Weno Municipality in a case involving the unpaid sum of Social Security taxes for the time period of October 1, 1995 to September 30, 1998. The amount of statutory penalties, interest, attorney's fees and cost is to be determined. The court will base final judgment on the submissions, without holding further hearings.

It took nearly eighteen months of hard and complicated work to arrive at this juncture. This judgment is a milestone case for FSMSS because it set the FSMSSA tax collection effort in the right direction. The FSMSSA used accurate, well-documented tax audit information as evidence in the case, and this was vital in proving the quality of the FSMSSA audit program. In the future, the FSMSSA hopes to improve and perfect the audit program standard, and to assure the accuracy and authenticity of Social Security tax for all tax payers.

This judgment is a positive development that will bolster and improve tax accountability, audit and collection efforts by the FSMSSA. It should serve as notice for employers in the FSM to keep and maintain accurate payroll records, tax reports and data.

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