Attorney Tina Azarvand speaks during the Saipan Chamber of Commerce meeting at Crowne Plaza on Wednesday, Sept. 3, 2025.
TINA Azarvand, principal of Azarvand Tax Law, discussed some of the potential tax impacts on the NMI of P.L. 119-21, better known as the One Big Beautiful Bill, at the Saipan Chamber of Commerce general membership meeting Wednesday at Crowne Plaza.
Azarvand said the law automatically applies to the CNMI.
The overtime tax provision in P.L. 119-21, she explained, is an income tax deduction for the employee, not an exemption from FICA tax. The benefit, intended to incentivize working more, would go to the employee.
She added, however, that in the CNMI, tax is paid on gross salary, so the lack of tax on overtime “doesn’t really matter here.”
Azarvand also noted that the Big Beautiful Bill expands the industries that can qualify for the FICA tax credit beyond just bars and restaurants.
Her presentation stated that the tax credit reduces taxable business income by the amount paid for the employer’s share of FICA tax on certain tips.
She said the qualified business income deduction provision allows eligible taxpayers to deduct up to 20% of their qualified business income plus 20% of qualified real estate investment trust dividends.
Focusing on local tax issues, Azarvand reminded Chamber members that the IRS requires withholding of FICA tax for CW-1 employees.
She noted that the Internal Revenue Service and U.S. Citizenship & Immigration Services have signed a cooperation agreement, making it “a lot easier to flag people with tax issues and create immigration issues for them as well.”
She also shared that Section 179 of the U.S. law allows businesses to deduct the full purchase price of qualifying equipment and improvements immediately.
In addition, she said settlement opportunities exist for businesses experiencing financial hardships, including the offer-in-compromise program, installment agreements, and obtaining “currently not collectible” status.
Azarvand will host an online tax workshop to expand on the topics she raised at the Chamber meeting. She told members she foresees discussing more ways the Big Beautiful Bill will impact the CNMI, how to avoid Social Security benefits issues, and how immigration is affected by tax issues.
The Azarvand Tax Law office can be contacted at info@azarvandtaxlaw.com/.
