Internal Revenue Code · 26 U.S.C.
§ 7654. Coordination of United States and certain possession individual income taxes
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 7654
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 31, 1972 by Pub. L. 92–606
- Last amended
- March 23, 2018 by Pub. L. 115–141
- Amendments
- 7 dated changes in the source credit
- Length
- 5 subsections · 447 words · about 2 min to read
- Defines
- 1 term
- Cross-references
- cites 2; cited by 4 Code sections and 3 other regulations
- Regulations
- 1 issued under this section
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.
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.
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.
(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.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 7654
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
- § 931 Income from sources within Guam, American Samoa, or the Northern Mariana Islands
- § 932 Coordination of United States and Virgin Islands income taxes
Cited by 4 Code sections
- § 932(a)(3) Coordination of United States and Virgin Islands income taxes
- § 937(a) Residence and source rules involving possessions
- § 6688 Assessable penalties with respect to information required to be furnished under section 7654
- § 7809(a) Deposit of collections
Cited in 3 regulations not issued under it
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 115–141Parts changed in 2018: (d)(1)
- Amended by Pub. L. 108–189Parts changed in 2003: (d)(1)
- Amended by Pub. L. 100–647Parts changed in 1988: (a)
- Amended by Pub. L. 99–514
- Amended by Pub. L. 98–67Parts changed in 1983: (d)
- Amended by Pub. L. 97–248Parts changed in 1982: (d)
- Amended by Pub. L. 94–455Parts changed in 1976: (d)
- Enacted by Pub. L. 92–606
Where it sits in the Code
- Subtitle F Procedure and Administration
- Chapter 78 DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE
- Subchapter D Possessions
Nearby sections
- § 7651 Administration and collection of taxes in possessions
- § 7652 Shipments to the United States
- § 7653 Shipments from the United States
- § 7654 Coordination of United States and certain possession individual income taxes
- § 7655 Cross references
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
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 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.
1982—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.
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 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.