26 U.S.C. § 7651 — Administration and collection of taxes in

Page 3997 TITLE 26—INTERNAL REVENUE CODE § 7651 nal Revenue Service shall equitably allocate in- vestigative costs among such agencies not to ex- ceed an aggregate amount of 10 percent of the taxes recovered. (c) No reimbursement where duplicative No State or local agency may receive reim- bursement under this section if reimbursement has been received by such agency under a Fed- eral or State forfeiture program or under State revenue laws. (Added Pub. L. 100–690, title VII, § 7602(a), Nov. 18, 1988, 102 Stat. 4507.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to information first provided more than 90 days after Nov. 18, 1988, see section 7602(e) of Pub. L. 100–690, set out as an Effective Date of 1988 Amendment note under section 6103 of this title. REGULATIONS Pub. L. 100–690, title VII, § 7602(g), Nov. 18, 1988, 102 Stat. 4508, provided that: ‘‘The Secretary of the Treas- ury shall, not later than 90 days after the date of enact- ment of this Act [Nov. 18, 1988], prescribe such rules and regulations as shall be necessary and proper to carry out the provisions of this section [enacting section 7624 of this title, amending sections 6103 and 7809 of this title, and enacting provisions set out as notes under sections 6103 and 7809 of this title], including regula- tions relating to the definition of information which substantially contributes to the recovery of Federal taxes and the substantiation of expenses required in order to receive a reimbursement.’’ [Subchapter C—Repealed] [§ 7641. Repealed. Pub. L. 94–455, title XIX, § 1906(a)(54), Oct. 4, 1976, 90 Stat. 1832] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 905; Oct. 27, 1970, Pub. L. 91–513, title III, § 1102(i), 84 Stat. 1293; Oct. 26, 1974, Pub. L. 93–490, § 3(b)(8), 88 Stat. 1467, re- lated to supervision of operations of every manufac- turer of oleomargarine, process or renovated butter or adulterated butter, or white phosphorous matches by the officers or employees of the Treasury Department. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective on first day of first month which be- gins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 6013 of this title. Subchapter D—Possessions Sec. 7651. Administration and collection of taxes in pos- sessions. 7652. Shipments to the United States. 7653. Shipments from the United States. 7654. Coordination of United States and certain possession individual income taxes. 7655. Cross references. Editorial Notes AMENDMENTS 1986—Pub. L. 99–514, title XII, § 1276(b), Oct. 22, 1986, 100 Stat. 2600, substituted ‘‘certain possession’’ for ‘‘Guam’’ in item 7654. 1972—Pub. L. 92–606, § 1(f)(6), Oct. 31, 1972, 86 Stat. 1497, substituted ‘‘Coordination of United States and Guam individual income taxes’’ for ‘‘Payment to Guam and American Samoa of proceeds of tax on coconut and palm oil’’ in item 7654. § 7651. Administration and collection of taxes in possessions Except as otherwise provided in this sub- chapter, and except as otherwise provided in sec- tion 28(a) of the Revised Organic Act of the Vir- gin 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 col- lection of any tax imposed by this title or of any other liability arising under this title (in- cluding 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 pos- session 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 di- rection of the Secretary, and shall be paid into the Treasury of the United States as in- ternal revenue collections; and (B) Applicable laws All provisions of the laws of the United States applicable to the administration, col- lection, and enforcement of such tax (includ- ing penalties) shall, in respect of such tax, extend to and be applicable in such posses- sion of the United States in the same man- ner and to the same extent as if such posses- sion 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 pos- session of the United States. (4) Virgin Islands (A) For purposes of this section, the ref- erence 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, § 1102(j), Oct. 27, 1970, 84 Stat. 1293; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, Page 3998 TITLE 26—INTERNAL REVENUE CODE § 7652 title I, § 130(c), title VIII, § 801(d)(9), July 18, 1984, 98 Stat. 661, 997; Pub. L. 99–514, title XII, § 1275(b), Oct. 22, 1986, 100 Stat. 2598; Pub. L. 110–172, § 11(a)(34)(B), Dec. 29, 2007, 121 Stat. 2487.) Editorial Notes REFERENCES IN TEXT Section 28(a) of the Revised Organic Act of the Virgin Islands, referred to in introductory provisions and par. (4), is classified to section 1642 of Title 48, Territories and Insular Possessions. Section 30 of the Organic Act of Guam, referred to in introductory provisions, is classified to section 1421h of Title 48. AMENDMENTS 2007—Pars. (4), (5). Pub. L. 110–172 redesignated par. (5) as (4) and struck out heading and text of former par. (4). Text read as follows: ‘‘For purposes of this section, the term ‘possession of the United States’ includes the Canal Zone.’’ 1986—Par. (5)(B). Pub. L. 99–514 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as fol- lows: ‘‘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, § 801(d)(9), inserted ‘‘or subpart C of part III of subchapter N of chapter 1’’. Pub. L. 98–369, § 130(c), inserted ‘‘(other than section 881(b)(1))’’. 1976—Par. (2)(A). Pub. L. 94–455 struck out ‘‘or his del- egate’’ after ‘‘Secretary’’. 1970—Pub. L. 91–513 struck out reference to excep- tions provided for in sections 4705(b), 4735, and 4762 (re- lating to taxes on narcotic drugs and marihuana) in provisions preceding par. (1). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain excep- tions 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 appli- cable 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 ap- plicable 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 sec- tion 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 Effec- tive 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 UN- EXPECTED REVENUE LOSSES OCCASIONED BY TAX RE- DUCTION ACT OF 1975 AND TAX REFORM ACT OF 1976 Pub. L. 95–134, title IV, § 402, Oct. 15, 1977, 91 Stat. 1163, provided that: ‘‘In order to compensate the terri- tories 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 author- ized 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, § 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 Amer- ican Samoa, the government of Guam, and the govern- ment of the Virgin Islands. The payment to the govern- ment 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 De- cember 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 Comptrol- lers for Guam and the Virgin Islands. ‘‘(b) There are hereby authorized to be appropriated, out of any funds in the Treasury not otherwise appro- priated, such sums as may be necessary to carry out the provisions of this section.’’ § 7652. Shipments to the United States (a) Puerto Rico (1) Rate of tax Except as provided in section 5314, articles of merchandise of Puerto Rican manufacture coming into the United States and withdrawn for consumption or sale shall be subject to a tax equal to the internal revenue tax imposed in the United States upon the like articles of merchandise of domestic manufacture. (2) Payment of tax The Secretary shall by regulations prescribe the mode and time for payment and collection of the tax described in paragraph (1), including any discretionary method described in section 6302(b) and (c). Such regulations shall author- ize the payment of such tax before shipment from Puerto Rico, and the provisions of sec- tion 7651(2)(B) shall be applicable to the pay- ment and collection of such tax in Puerto Rico. (3) Deposit of internal revenue collections All taxes collected under the internal rev- enue laws of the United States on articles pro- duced in Puerto Rico and transported to the United States (less the estimated amount nec- essary for payment of refunds and drawbacks), or consumed in the island, shall be covered into the treasury of Puerto Rico.