
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: 26USC7654]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
       CHAPTER 78--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE
 
                        Subchapter D--Possessions
 
Sec. 7654. Coordination of United States and certain possession 
        individual income taxes
        

(a) General rule

    The net collection of taxes imposed by chapter 1 for each taxable 
year with respect to an individual to whom section 931 or 932(c) applies 
shall be covered into the Treasury of the specified possession of which 
such individual is a bona fide resident.

(b) Definition and special rule

    For purposes of this section--

                         (1) Net collections

        In determining net collections for a taxable year, an 
    appropriate adjustment shall be made for credits allowed against the 
    tax liability and refunds made of income taxes for the taxable year.

                      (2) Specified possession

        The term ``specified possession'' means Guam, American Samoa, 
    the Northern Mariana Islands, and the Virgin Islands.

(c) Transfers

    The transfers of funds between the United States and any specified 
possession required by this section shall be made not less frequently 
than annually.

(d) Federal personnel

    In addition to the amount determined under subsection (a), the 
United States shall pay to each specified possession at such times and 
in such manner as determined by the Secretary--
        (1) the amount of the taxes deducted and withheld by the United 
    States under chapter 24 with respect to compensation paid to members 
    of the Armed Forces who are stationed in such possession but who 
    have no income tax liability to such possession with respect to such 
    compensation by reason of the Soldiers' and Sailors' Civil Relief 
    Act (50 App. U.S.C. 501 et seq.), and
        (2) the amount of the taxes deducted and withheld under chapter 
    24 with respect to amounts paid for services performed as an 
    employee of the United States (or any agency thereof) in a specified 
    possession with respect to an individual unless section 931 or 
    932(c) applies.

(e) Regulations

    The Secretary shall prescribe such regulations as may be necessary 
to carry out the provisions of this section and sections 931 and 932, 
including regulations prohibiting the rebate of taxes covered over which 
are allocable to United States source income and prescribing the 
information which the individuals to whom such sections may apply shall 
furnish to the Secretary.

(Aug. 16, 1954, ch. 736, 68A Stat. 909; Pub. L. 92-606, Sec. 1(b), Oct. 
31, 1972, 86 Stat. 1495; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), 
Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-248, title III, 
Secs. 307(a)(16), 308(a), Sept. 3, 1982, 96 Stat. 590, 591; Pub. L. 98-
67, title I, Sec. 102(a), Aug. 5, 1983, 97 Stat. 369; Pub. L. 99-514, 
title XII, Sec. 1276(a), Oct. 22, 1986, 100 Stat. 2599; Pub. L. 100-647, 
title I, Sec. 1012(y), Nov. 10, 1988, 102 Stat. 3530.)

                       References in Text

    The Soldiers' and Sailors' Civil Relief Act, referred to in subsec. 
(d)(1), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, as amended, which 
is classified to section 501 et seq. of the Appendix to Title 50, War 
and National Defense. For complete classification of this Act to the 
Code, see section 501 of the Appendix to Title 50 and Tables.


                               Amendments

    1988--Subsec. (a). Pub. L. 100-647 substituted ``an individual to 
whom'' for ``an individual to which''.
    1986--Pub. L. 99-514 amended section generally, substituting 
provisions relating to coordination of United States and certain 
possession individual income taxes for provisions relating to 
coordination of United States and Guam individual income taxes.
    1983--Subsec. (d). Pub. L. 98-67 repealed amendments made by Pub. L. 
97-248. See 1982 Amendment note below.
    1982--Subsec. (d). Pub. L. 97-248 provided that, applicable to 
payments of interest, dividends, and patronage dividends paid or 
credited after June 30, 1983, subsec. (d) is amended by inserting 
``subchapter A of'' before ``chapter 24''. Section 102(a), (b) of Pub. 
L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A 
(Secs. 301-308) of title III of Pub. L. 97-248 as of the close of June 
30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] 
[this title] shall be applied and administered (subject to certain 
exceptions) as if such subtitle A (and the amendments made by such 
subtitle A) had not been enacted.
    1976--Subsecs. (d), (e). Pub. L. 94-455 struck out ``or his 
delegate'' after ``Secretary'' wherever appearing.
    1972--Pub. L. 92-606 substituted provisions relating to individual 
income taxes in Guam and their sharing by the United States and Guam, 
for provisions relating to payment to Guam and American Samoa of 
proceeds of tax on coconut and other vegetable oils.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    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 1972 Amendment

    Amendment by Pub. L. 92-606 applicable with respect to taxable years 
beginning after Dec. 31, 1972, see section 2 of Pub. L. 92-606, set out 
in part as an Effective Date note under section 931 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 932, 6688, 7809 of this 
title; title 48 section 1421i.
