I.R.C. § 937(a) Bona Fide Resident —
For purposes of this subpart, section 865(g)(3), section 876, section 881(b), paragraphs (2) and (3)
of section 901(b), section 957(c),
section 3401(a)(8)(C), and section 7654(a), except as provided in regulations, the term “bona fide resident”
means a person—
I.R.C. § 937(a)(1) —
who is present for at least 183 days during the taxable year in Guam, American Samoa,
the Northern Mariana Islands, Puerto Rico, or the Virgin Islands, as the case may
be, and
I.R.C. § 937(a)(2) —
who does not have a tax home (determined under the principles of section 911(d)(3) without regard to the second sentence thereof) outside such specified possession
during the taxable year and does not have a closer connection
(determined under the principles of section 7701(b)(3)(B)(ii))
to the United States or a foreign country than to such specified
possession.
For purposes of paragraph (1), the determination as to whether a person is present
for any day shall be made under the
principles of section 7701(b).
I.R.C. § 937(b) Source Rules —
Except as provided in regulations, for purposes of this title—
I.R.C. § 937(b)(1) —
except as provided in paragraph (2), rules similar to the rules for determining whether
income is income from sources within the United States or is effectively connected
with the conduct of a trade or business within the United States shall apply for
purposes of determining whether income is from sources within a possession specified
in subsection (a)(1) or effectively connected with the conduct of a trade or business
within any such possession, and
I.R.C. § 937(b)(2) —
any income treated as income from sources within the United States or as effectively
connected with the conduct of a trade or business within the United States shall not
be treated as income from sources within any such possession or as effectively connected
with the conduct of a trade or business within any such possession.
I.R.C. § 937(c) Reporting Requirement
I.R.C. § 937(c)(1) In General —
If, for any taxable year, an individual takes the position for United States income
tax reporting purposes that the individual became, or ceases to be, a bona fide resident
of a possession specified in subsection (a)(1), such individual shall file with the
Secretary, at such time and in such manner as the Secretary may prescribe, notice
of such position.
I.R.C. § 937(c)(2) Transition Rule —
If, for any of an individual's 3 taxable years ending before the individual's first
taxable year ending after the date of the enactment of this subsection, the individual
took a position described in paragraph (1), the individual shall file with the Secretary,
at such time and in such manner as the Secretary may prescribe, notice of such position.
(Added by Pub. L. 108-357, title VIII, Sec. 908(a), Oct. 22, 2004, 118 Stat. 1418.)
BACKGROUND NOTES
EFFECTIVE DATE
Effective for taxable years ending after the date of the enactment of this Act [Enacted:
Oct. 22, 2004]. Pub. L. 108-357, Sec. 908(d)(2)-(3) provided the following exceptions:
“(2) 183-DAY RULE- Section 937(a)(1) of the Internal Revenue Code of 1986 (as added by this section) shall apply to taxable years beginning after
the date of the enactment of this Act.
“(3) SOURCING- Section 937(b)(2) of such Code (as so added) shall apply to income
earned after the date of the enactment of this Act.”
