26 U.S.C. § 7654
§ 7654. Coordination of United States and certain possession individual income taxes
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Part of the code since 1954. Last changed March 23, 2018 by the Consolidated Appropriations Act, 2018.
Every change, newest first (9)
- March 23, 2018Consolidated Appropriations Act, 2018
- December 19, 2003Public Law 108-189
- November 10, 1988Technical and Miscellaneous Revenue Act of 1988
- October 22, 1986Tax Reform Act of 1986
- August 5, 1983Public Law 98-67
- September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982
- October 4, 1976Tax Reform Act of 1976
- October 31, 1972Public Law 92-606
- August 16, 1954Internal Revenue Code of 1954 (original text)
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
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.
For purposes of this section—
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.
The term “specified possession” means Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands.
The transfers of funds between the United States and any specified possession required by this section shall be made not less frequently than annually.
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—
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 seq.), and
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.
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.