I.R.C. § 7654(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
applies shall be covered into the Treasury of the specified possession of which
such individual is a bona fide resident.
I.R.C. § 7654(b) Definition And Special Rule
For purposes of this section--
I.R.C. § 7654(b)(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.
I.R.C. § 7654(b)(2) Specified Possession
The term “specified possession” means Guam, American Samoa, the Northern
Mariana Islands, and the Virgin Islands.
I.R.C. § 7654(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.
I.R.C. § 7654(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--
I.R.C. § 7654(d)(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 Servicemembers Civil Relief Act (50 U.S.C. 3901 et
I.R.C. § 7654(d)(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
I.R.C. § 7654(e) Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out
the provisions of this section and sections 931
, 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; Oct. 31, 1972, Pub. L. 92-606, 1(b), 86 Stat. 1495; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1906(b)(13)(A), 90 Stat. 1834; Sept. 3, 1982, Pub. L. 97-248, title
III, 307(a)(16), 308(a), 96 Stat. 590, 591; Aug. 5, 1983, Pub. L. 98-67, title I, 102(a), 97 Stat. 369; Oct. 22, 1986, Pub. L. 99-514, title XII, 1276(a), 100 Stat. 2599; Nov. 10, 1988, Pub. L. 100-647, title I, 1012(y), 102 Stat. 3530; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(330), Mar. 23, 2018, 132 Stat. 348.)
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 Title 50, Appendix, War
and National Defense. For complete classification of this Act to the Code, see section
501 of Title 50, Appendix, and Tables.
(d)(1). Pub. L. 115-141, Div. U, Sec. 401(a)(330), amended par. (1) by substituting “50 U.S.C. 3901 et seq.” for “50 App. U.S.C. 501 et seq.”.
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.
--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 (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 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(330), effective March 23, 2018.
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 59B, 932, 6688, 7809 of this title; title
48 section 1421i.