26 U.S.C. § 7654 — Coordination of United States and certain

Page 4004 TITLE 26—INTERNAL REVENUE CODE § 7654 Editorial Notes REFERENCES IN TEXT Act of August 1, 1950, referred to in subsec. (d), is act Aug. 1, 1950, ch. 512, 64 Stat. 384, known as the Organic Act of Guam, which is classified principally to chapter 8A (§ 1421 et seq.) of Title 48, Territories and Insular Possessions. For complete classification of this Act to the Code, see Short Title note set out under section 1421 of Title 48 and Tables. AMENDMENTS 1976—Subsec. (d). Pub. L. 94–455 struck out ‘‘ch. 512, 64 Stat. 392, section 30’’ after ‘‘August 1, 1950’’. 1960—Subsec. (d). Pub. L. 86–624 substituted ‘‘or its possessions’’ for ‘‘, its possessions or the Territory of Hawaii’’. 1959—Subsec. (d). Pub. L. 86–70 substituted ‘‘its pos- sessions or the Territory of Hawaii’’ for ‘‘its Territories or possessions’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86–624 effective Aug. 21, 1959, see section 18(k) of Pub. L. 86–624, set out as a note under section 3121 of this title. EFFECTIVE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86–70 effective Jan. 3, 1959, see section 22(i) of Pub. L. 86–70, set out as a note under section 3121 of this title. § 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 indi- vidual 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 tax- able year. (2) Specified possession The term ‘‘specified possession’’ means Guam, American Samoa, the Northern Mar- iana 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 mem- bers of the Armed Forces who are stationed in such possession but who have no income tax li- ability to such possession with respect to such compensation by reason of the Servicemembers Civil Relief Act (50 U.S.C. 3901 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 em- ployee of the United States (or any agency thereof) in a specified possession with respect to an individual unless section 931 or 932(c) ap- plies. (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, includ- ing regulations prohibiting the rebate of taxes covered over which are allocable to United States source income and prescribing the infor- mation which the individuals to whom such sec- tions may apply shall furnish to the Secretary. (Aug. 16, 1954, ch. 736, 68A Stat. 909; Pub. L. 92–606, § 1(b), Oct. 31, 1972, 86 Stat. 1495; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, §§ 307(a)(16), 308(a), Sept. 3, 1982, 96 Stat. 590, 591; Pub. L. 98–67, title I, § 102(a), Aug. 5, 1983, 97 Stat. 369; Pub. L. 99–514, title XII, § 1276(a), Oct. 22, 1986, 100 Stat. 2599; Pub. L. 100–647, title I, § 1012(y), Nov. 10, 1988, 102 Stat. 3530; Pub. L. 108–189, § 2(d), Dec. 19, 2003, 117 Stat. 2866; Pub. L. 115–141, div. U, title IV, § 401(a)(330), Mar. 23, 2018, 132 Stat. 1200.) Editorial Notes REFERENCES IN TEXT The Servicemembers Civil Relief Act, referred to in subsec. (d)(1), is act Oct. 17, 1940, ch. 888, 54 Stat. 1178, which is classified generally to chapter 50 (§ 3901 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see section 3901 of Title 50 and Tables. AMENDMENTS 2018—Subsec. (d)(1). Pub. L. 115–141 substituted ‘‘50 U.S.C. 3901 et seq.’’ for ‘‘50 App. U.S.C. 501 et seq.’’ 2003—Subsec. (d)(1). Pub. L. 108–189 substituted ‘‘Servicemembers Civil Relief Act’’ for ‘‘Soldiers’ and Sailors’ Civil Relief Act’’. 1988—Subsec. (a). Pub. L. 100–647 substituted ‘‘an indi- vidual to whom’’ for ‘‘an individual to which’’. 1986—Pub. L. 99–514 amended section generally, sub- stituting 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, appli- cable 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 (§§ 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 adminis- tered (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 Page 4005 TITLE 26—INTERNAL REVENUE CODE § 7701 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. Statutory Notes and Related Subsidiaries 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 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 1972 AMENDMENT Amendment by Pub. L. 92–606 applicable with respect to taxable years beginning after Dec. 31, 1972, see sec- tion 2 of Pub. L. 92–606, set out in part as an Effective Date note under section 931 of this title. § 7655. Cross references (a) Imposition of tax in possessions For provisions imposing tax in possessions, see— (1) Chapter 2, relating to self-employment tax; (2) Chapter 21, relating to the tax under the Federal Insurance Contributions Act. (b) Other provisions For other provisions relating to possessions of the United States, see— (1) Section 931, relating to income tax on resi- dents of Guam, American Samoa, or the Northern Mariana Islands; (2) Section 933, relating to income tax on resi- dents of Puerto Rico. (Aug. 16, 1954, ch. 736, 68A Stat. 909; Pub. L. 85–859, title II, § 204(19), Sept. 2, 1958, 72 Stat. 1430; Pub. L. 91–513, title III, § 1102(k), Oct. 27, 1970, 84 Stat. 1293; Pub. L. 94–455, title XIX, § 1904(b)(6)(B), Oct. 4, 1976, 90 Stat. 1815; Pub. L. 99–514, title XII, § 1272(d)(11), Oct. 22, 1986, 100 Stat. 2594; Pub. L. 101–508, title XI, § 11801(c)(22)(E), Nov. 5, 1990, 104 Stat. 1388–528.) Editorial Notes REFERENCES IN TEXT The Federal Insurance Contributions Act, referred to in subsec. (a)(2), is act Aug. 16, 1954, ch. 736, §§ 3101, 3102, 3111, 3112, 3121 to 3128, 68A Stat. 415, which is classified generally to chapter 21 (§ 3101 et seq.) of this title. For complete classification of this Act to the Code, see sec- tion 3128 of this title and Tables. AMENDMENTS 1990—Subsec. (a)(2), (3). Pub. L. 101–508, § 11801(c)(22)(E)(i), substituted period for semicolon at end of par. (2) and struck out par. (3) which cross-ref- erenced former chapter 37 relating to tax on sugar. Subsec. (b)(2), (3). Pub. L. 101–508, § 11801(c)(22)(E)(ii), substituted period for semicolon at end of par. (2) and struck out par. (3) which cross-referenced former sec- tion 6418(b) relating to the exportation of sugar to Puerto Rico. 1986—Subsec. (b). Pub. L. 99–514 added par. (1) and re- designated former pars. (1) and (2) as (2) and (3), respec- tively. 1976—Subsec. (a)(3), (5). Pub. L. 94–455 substituted ‘‘Chapter 37’’ for ‘‘Subchapter A of chapter 37’’ in par. (5) and redesignated par. (5) as (3). 1970—Subsec. (a)(3), (4). Pub. L. 91–513 struck out pars. (3) and (4) relating to taxes in respect of narcotic drugs and taxes in respect of marihuana, respectively, and making references to parts I and III of subchapter A of chapter 39 and to parts II and III of subchapter A of chapter 39, respectively. 1958—Subsec. (a)(5), (6). Pub. L. 85–859 redesignated par. (6) as (5) and struck out former par. (5) which con- tained a cross reference to chapter 51 of this title. 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 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. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85–859 effective Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as an Ef- fective Date note under section 5001 of this title. SAVINGS PROVISION For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liabil- ity for tax for periods ending after Nov. 5, 1990, see sec- tion 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. 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. CHAPTER 79—DEFINITIONS Sec. 7701. Definitions. 7702. Life insurance contract defined. 7702A. Modified endowment contract defined. 7702B. Treatment of qualified long-term care insur- ance. 7703. Determination of marital status. 7704. Certain publicly traded partnerships treated as corporations. 7705. Certified professional employer organiza- tions. Editorial Notes AMENDMENTS 2014—Pub. L. 113–295, div. B, title II, § 206(d)(2), Dec. 19, 2014, 128 Stat. 4071, added item 7705. 1996—Pub. L. 104–191, title III, § 321(e), Aug. 21, 1996, 110 Stat. 2059, added item 7702B. 1988—Pub. L. 100–647, title V, § 5012(c)(2), Nov. 10, 1988, 102 Stat. 3664, added item 7702A. 1987—Pub. L. 100–203, title X, § 10211(b), Dec. 22, 1987, 101 Stat. 1330–405, added item 7704. 1986—Pub. L. 99–514, title XIII, § 1301(j)(2)(B), Oct. 22, 1986, 100 Stat. 2657, added item 7703. 1984—Pub. L. 98–369, div. A, title II, § 221(c), July 18, 1984, 98 Stat. 772, added item 7702. § 7701. Definitions (a) When used in this title, where not other- wise distinctly expressed or manifestly incom- patible with the intent thereof—