
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7651]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
       CHAPTER 78--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE
 
                        Subchapter D--Possessions
 
Sec. 7651. Administration and collection of taxes in possessions

    Except as otherwise provided in this subchapter, and except as 
otherwise provided in section 28(a) of the Revised Organic Act of the 
Virgin Islands and section 30 of the Organic Act of Guam (relating to 
the covering of the proceeds of certain taxes into the treasuries of the 
Virgin Islands and Guam, respectively)--

           (1) Applicability of administrative provisions

        All provisions of the laws of the United States applicable to 
    the assessment and collection of any tax imposed by this title or of 
    any other liability arising under this title (including penalties) 
    shall, in respect of such tax or liability, extend to and be 
    applicable in any possession of the United States in the same manner 
    and to the same extent as if such possession were a State, and as if 
    the term ``United States'' when used in a geographical sense 
    included such possession.

                    (2) Tax imposed in possession

        In the case of any tax which is imposed by this title in any 
    possession of the United States--

        (A) Internal revenue collections

            Such tax shall be collected under the direction of the 
        Secretary, and shall be paid into the Treasury of the United 
        States as internal revenue collections; and

        (B) Applicable laws

            All provisions of the laws of the United States applicable 
        to the administration, collection, and enforcement of such tax 
        (including penalties) shall, in respect of such tax, extend to 
        and be applicable in such possession of the United States in the 
        same manner and to the same extent as if such possession were a 
        State, and as if the term ``United States'' when used in a 
        geographical sense included such possession.

               (3) Other laws relating to possessions

        This section shall apply notwithstanding any other provision of 
    law relating to any possession of the United States.

                           (4) Canal Zone

        For purposes of this section, the term ``possession of the 
    United States'' includes the Canal Zone.

                         (5) Virgin Islands

        (A) For purposes of this section, the reference in section 28(a) 
    of the Revised Organic Act of the Virgin Islands to ``any tax 
    specified in section 3811 of the Internal Revenue Code'' shall be 
    deemed to refer to any tax imposed by chapter 2 or by chapter 21.
        (B) For purposes of this title, section 28(a) of the Revised 
    Organic Act of the Virgin Islands shall be effective as if such 
    section 28(a) had been enacted before the enactment of this title 
    and such section 28(a) shall have no effect on the amount of income 
    tax liability required to be paid by any person to the United 
    States.

(Aug. 16, 1954, ch. 736, 68A Stat. 906; Pub. L. 91-513, title III, 
Sec. 1102(j), Oct. 27, 1970, 84 Stat. 1293; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. 
A, title I, Sec. 130(c), title VIII, Sec. 801(d)(9), July 18, 1984, 98 
Stat. 661, 997; Pub. L. 99-514, title XII, Sec. 1275(b), Oct. 22, 1986, 
100 Stat. 2598.)

                       References in Text

    Section 28(a) of the Revised Organic Act of the Virgin Islands, 
referred to in pars. (1) and (5), is classified to section 1642 of Title 
48, Territories and Insular Possessions.
    Section 30 of the Organic Act of Guam, referred to in par. (1), is 
classified to section 1421h of Title 48.
    For definition of Canal Zone, referred to in par. (4), see section 
3602(b) of Title 22, Foreign Relations and Intercourse.


                               Amendments

    1986--Par. (5)(B). Pub. L. 99-514 amended subpar. (B) generally. 
Prior to amendment, subpar. (B) read as follows: ``For purposes of this 
title (other than section 881(b)(1) or subpart C of part III of 
subchapter N of chapter 1), section 28(a) of the Revised Organic Act of 
the Virgin Islands shall be effective as if such section had been 
enacted subsequent to the enactment of this title.''
    1984--Par. (5)(B). Pub. L. 98-369, Sec. 801(d)(9), inserted ``or 
subpart C of part III of subchapter N of chapter 1''.
    Pub. L. 98-369, Sec. 130(c), inserted ``(other than section 
881(b)(1))''.
    1976--Par. (2)(A). Pub. L. 94-455 struck out ``or his delegate'' 
after ``Secretary''.
    1970--Pub. L. 91-513 struck out reference to exceptions provided for 
in sections 4705(b), 4735, and 4762 (relating to taxes on narcotic drugs 
and marihuana) in provisions preceding par. (1).


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to taxable years beginning 
after Dec. 31, 1986, with certain exceptions and qualifications, see 
section 1277 of Pub. L. 99-514, set out as a note under section 931 of 
this title.


                    Effective Date of 1984 Amendment

    Amendment by section 130(c) of Pub. L. 98-369 applicable to payments 
made after Mar. 1, 1984, in taxable years ending after such date, see 
section 130(d) of Pub. L. 98-369, set out as a note under section 881 of 
this title.
    Amendment by section 801(d)(9) of Pub. L. 98-369 applicable to 
transactions after Dec. 31, 1984, in taxable years ending after such 
date, see section 805(a)(1) of Pub. L. 98-369, as amended, set out as a 
note under section 245 of this title.


                    Effective Date of 1970 Amendment

    Amendment by Pub. L. 91-513 effective on first day of seventh 
calendar month that begins after Oct. 26, 1970, see section 1105(a) of 
Pub. L. 91-513, set out as an Effective Date note under section 951 of 
Title 21, Food and Drugs.


                            Savings Provision

    Prosecutions for any violation of law occurring, and civil seizures 
or forfeitures and injunctive proceedings commenced, prior to the 
effective date of amendment of this section by section 1102 of Pub. L. 
91-513 not to be affected or abated by reason thereof, see section 1103 
of Pub. L. 91-513, set out as a note under sections 171 to 174 of Title 
21, Food and Drugs.


 Compensation to Guam and Virgin Islands for Unexpected Revenue Losses 
   Occasioned by Tax Reduction Act of 1975 and Tax Reform Act of 1976

    Pub. L. 95-134, title IV, Sec. 402, Oct. 15, 1977, 91 Stat. 1163, 
provided that: ``In order to compensate the territories of Guam and the 
Virgin Islands for unexpected revenue losses occasioned by the Tax 
Reduction Act of 1975 [Pub. L. 94-12, Mar. 29, 1975, 89 Stat. 26, see 
Tables] and the Tax Reform Act of 1976 [Pub. L. 94-455, Oct. 4, 1976, 90 
Stat. 1525, see Tables] there is hereby authorized to be appropriated to 
the Secretary for grants to the government of Guam not to exceed 
$15,000,000 and after October 1, 1977, for grants to the government of 
the Virgin Islands not to exceed $14,000,000, such sums being in 
addition to those previously authorized for such purposes.''


 Payments to Government of American Samoa, Guam, and the Virgin Islands

    Pub. L. 95-30, title IV, Sec. 407, May 23, 1977, 91 Stat. 156, 
provided that:
    ``(a) The Secretary of the Treasury is authorized to make separate 
payments to the government of American Samoa, the government of Guam, 
and the government of the Virgin Islands. The payment to the government 
of a particular possession shall be in an amount equal to the loss to 
that possession with respect to tax returns for the first taxable year 
beginning after December 31, 1976, by reason of sections 101 and 102 of 
this Act [amending sections 1, 3, 21, 42, 57, 63, 143, 161, 172, 211, 
402, 441, 443, 511, 584, 613A, 641, 642, 667, 703, 861, 862, 873, 904, 
911, 931, 1034, 1211, 1302, 6014, 6212, 6504, and 6654 of this title and 
repealing sections 36, 141, 142, 144 and 145 of this title]. Such amount 
shall be determined by the Secretary of the Treasury upon certification 
to the Secretary by the United States Government Comptrollers for Guam 
and the Virgin Islands.
    ``(b) There are hereby authorized to be appropriated, out of any 
funds in the Treasury not otherwise appropriated, such sums as may be 
necessary to carry out the provisions of this section.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1403, 7652, 7809 of this 
title.
