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Title 26 — Internal Revenue Code

Chapter 78 — Discovery of Liability and Enforcement of Title

§ 7651. Administration and collection of taxes in possessions

Statutory text

Except as otherwise provided in this subchapter, and except as otherwise provided in section 28(a) of the Revised Organic Act of the Virgin 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 collection of any tax imposed by this title or of any other liability arising under this title (including 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 possession 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 direction of the Secretary, and shall be paid into the Treasury of the United States as internal revenue collections; and

(B)

Applicable laws

All provisions of the laws of the United States applicable to the administration, collection, and enforcement of such tax (including penalties) shall, in respect of such tax, extend to and be applicable in such possession of the United States in the same manner and to the same extent as if such possession 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 possession of the United States.

(4)

Virgin Islands

(A)

For purposes of this section, the reference 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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Aug. 16, 1954, ch. 736, 68A Stat. 906 · 68A Stat. 906

    Enacted · 26 U.S.C. § 7651

    Aug. 16, 1954, ch. 736, 68A Stat. 906

    Source evidence

    Code source credit
    Aug. 16, 1954, ch. 736, 68A Stat. 906

  2. Controlled Substances Import and Export Act

    Pub. L. 91–513 title III § 1102(j) · 84 Stat. 1236

    Struck · 26 U.S.C. § 7651

    Pub. L. 91–513 struck out reference to exceptions provided for in sections 4705(b), 4735, and 4762 (relating to taxes on narcotic drugs and marihuana) in provisions preceding par. (1)

    Source evidence

    Code amendment note
    Pub. L. 91–513 struck out reference to exceptions provided for in sections 4705(b), 4735, and 4762 (relating to taxes on narcotic drugs and marihuana) in provisions preceding par. (1).

    Enacted provision · exact public law section
    (j) Section 7651 of the Internal Revenue Code of 1954 (relating to administration and collection of taxes in possessions) is amended by striking out “and in sections 4705(b), 4735, and 4762 (relating tn taxes on narcotic drugs and marihuana)”.

  3. Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520

    Struck · 26 U.S.C. § 7651(2)(A)

    Pub. L. 94–455 struck out “or his delegate” after “Secretary”

    Source evidence

    Code amendment note
    Par. (2)(A). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

    Enacted provision · exact public law section
    (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

  4. Tax Reform Act of 1984

    Pub. L. 98–369 § 801(d)(9) · 98 Stat. 494

    Inserted · 26 U.S.C. § 7651(5)(B)

    Pub. L. 98–369, § 801(d)(9), inserted “or subpart C of part III of subchapter N of chapter 1”

    Source evidence

    Code amendment note
    Par. (5)(B). Pub. L. 98–369, § 801(d)(9), inserted “or subpart C of part III of subchapter N of chapter 1”.

    Enacted provision · exact public law section
    (9) Subparagraph (B) of section 7651(5), as amended by this 26 USC 7651. Act, is amended by inserting “or subpart C of part III of subchapter N of chapter 1” after “881(b)(1)”.

  5. Tax Reform Act of 1984

    Pub. L. 98–369 § 130(c) · 98 Stat. 494

    Inserted · 26 U.S.C. § 7651(5)(B)

    Pub. L. 98–369, § 130(c), inserted “(other than section 881(b)(1))”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 98–369, § 130(c), inserted “(other than section 881(b)(1))”.

    Enacted provision · exact public law section
    (c) Technical Amendment.— Subparagraph (B) of section 7651(5) 26 USC 7651. is amended by inserting “(other than section 881(b)(1))” after “For purposes of this title”.

  6. Tax Reform Act of 1986

    Pub. L. 99–514 title XII § 1275(b) · 100 Stat. 2085

    Amended · 26 U.S.C. § 7651(5)(B)

    Pub. L. 99–514 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “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.”

    Source evidence

    Code amendment note
    Par. (5)(B). Pub. L. 99–514 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “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.”

    Enacted provision · exact public law section
    (b) Clarification of Treatment of Virgin Islands Inhabitants.— Subparagraph (B) of section 7651(5) (relating to the Virgin Islands) is amended to read as follows: “(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.”

    Effective date note
    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.

  7. Tax Technical Corrections Act of 2007

    Pub. L. 110–172 § 11(a)(34)(B) · 121 Stat. 2473

    1. Redesignated · 26 U.S.C. § 7651(4); 26 U.S.C. § 7651(5)

      Pub. L. 110–172 redesignated par. (5) as (4)

    2. Struck · 26 U.S.C. § 7651(4); 26 U.S.C. § 7651(5)

      Pub. L. 110–172 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.”

    Source evidence

    Code amendment note
    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.”

    Enacted provision · exact public law section
    (B) Section 7651 is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4).

7 of 8 references resolved to an enrolled provision · 1 partial

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.

Amendments1970–2007 · 5 rounds

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 follows: “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 delegate” after “Secretary”.

1970

Pub. L. 91–513 struck out reference to exceptions provided for in sections 4705(b), 4735, and 4762 (relating 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 , 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 1984 Amendment

Amendment by section 130(c) of Pub. L. 98–369 applicable to payments made after , 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 applicable to transactions after , 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 section 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 , see section 1105(a) of Pub. L. 91–513, set out as an Effective 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 Unexpected Revenue Losses Occasioned by Tax Reduction Act of 1975 and Tax Reform Act of 1976

Pub. L. 95–134, title IV, § 402, , 91 Stat. 1163, provided that: “In order to compensate the territories of Guam and the Virgin Islands for unexpected revenue losses occasioned by the Tax Reduction Act of 1975 [Pub. L. 94–12, , 89 Stat. 26, see Tables] and the Tax Reform Act of 1976 [Pub. L. 94–455, , 90 Stat. 1525, see Tables] there is hereby authorized to be appropriated to the Secretary for grants to the government of Guam not to exceed $15,000,000 and after , 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, , 91 Stat. 156, provided that:

“(a)

The Secretary of the Treasury is authorized to make separate payments to the government of American Samoa, the government of Guam, and the government of the Virgin Islands. The payment to the government 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 , 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 Comptrollers for Guam and the Virgin Islands.

“(b)

There are hereby authorized to be appropriated, out of any funds in the Treasury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this section.”

Credits

1954–2007 · 6 acts
  1. 1954Aug. 16, 1954, ch. 736, 68A Stat. 906
  2. 1970Pub. L. 91–513, title III, § 1102(j), , 84 Stat. 1293
  3. 1976Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834
  4. 1984Pub. L. 98–369, div. A, title I, § 130(c), title VIII, § 801(d)(9), , 98 Stat. 661, 997
  5. 1986Pub. L. 99–514, title XII, § 1275(b), , 100 Stat. 2598
  6. 2007Pub. L. 110–172, § 11(a)(34)(B), , 121 Stat. 2487.
Show as published

(Aug. 16, 1954, ch. 736, 68A Stat. 906; Pub. L. 91–513, title III, § 1102(j), , 84 Stat. 1293; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834; Pub. L. 98–369, div. A, title I, § 130(c), title VIII, § 801(d)(9), , 98 Stat. 661, 997; Pub. L. 99–514, title XII, § 1275(b), , 100 Stat. 2598; Pub. L. 110–172, § 11(a)(34)(B), , 121 Stat. 2487.)

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