§1397 — Other definitions and special rules
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Statute Text — 26 U.S.C. §1397
For purposes of this subpart—
The term “wages” has the same meaning as when used in section 51.
The following amounts shall be treated as wages paid to an employee:
Any amount paid or incurred by an employer which is excludable from the gross income of an employee under section 127, but only to the extent paid or incurred to a person not related to the employer.
In the case of an employee who has not attained the age of 19, any amount paid or incurred by an employer for any youth training program operated by such employer in conjunction with local education officials.
A person is related to any other person if the person bears a relationship to such other person specified in section 267(b) or 707(b)(1), or such person and such other person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), “10 percent” shall be substituted for “50 percent”.
For purposes of this subpart—
all employers treated as a single employer under subsection (a) or (b) of section 52 shall be treated as a single employer for purposes of this subpart, and
the credit (if any) determined under section 1396 with respect to each such employer shall be its proportionate share of the wages giving rise to such credit.
For purposes of this subpart, rules similar to the rules of section 51(k) and subsections (c), (d), and (e) of section 52 shall apply.
35 Citing Cases
§ 1397 (2006)); see also United States v. Calhoun, 566 F.2d 969, 975 (5th Cir. 1978) (“This statute effectively established separate and distinct taxing jurisdictions in the United States and the Virgin Islands . . . .”). Originally, U.S. citizens permanently residing in the USVI who had both U.S.-source and USVI-source income “were required to fil
1397jj(c)(5) (2018)); Community Opportunities, Accountability, and Training and Educational Services Act of 1998, Pub. L. No. 105-285, sec. 201, 112 Stat. at 2729 (codified at 42 U.S.C. sec. 9902(2) (2018)). APTCs are paid - 6 - directly to an insurance provider during the year, and taxpayers are required to reconcile any APTCs received with
1397; see a_lso Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). For most ofthe twentieth century, taxpayers who earned both U.S.- and VI- source income had to file returns and pay taxes to bothjurisdictions, in a way similar to the filing ofboth federal and state income tax returns. See Appleton, 140 T.C. at 278. This all changed whe
1397; see a_lso Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). For most ofthe twentieth century, taxpayers who earned both U.S.- and VI- source income had to file returns and pay taxes to bothjurisdictions, in a way similar to the filing ofboth federal and state income tax returns. See Appleton, 140 T.C. at 278. This all changed whe
1397 (2006)), Congress created a tax system for the USVI. This tax system, usually referred to as the mirror code, 4(...continued) relationship with his or her employer (Employer) and (iii) purport to become a partner ofa Virgin Islands limited liability partnership ("V.I.LLP") that is treated as a partnership for U.S. tax purposes. V.I.LLP th
1397; see a_lso Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). For most ofthe twentieth century, taxpayers who earned both U.S.- and VI- source income had to file returns and pay taxes to bothjurisdictions, in a way similar to the filing ofboth federal and state income tax returns. See Appleton, 140 T.C. at 278. This all changed whe
1397; see a_lso Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). For most ofthe twentieth century, taxpayers who earned both U.S.- and VI- source income had to file returns and pay taxes to bothjurisdictions, in a way similar to the filing ofboth federal and state income tax returns. See Appleton, 140 T.C. at 278. This all changed whe
1397jj(c)(5) (Supp. V 2006); 42 U.S.C. sec. 9902(2) (2006). During 2014 the Federal poverty line was $15,510 for a two- person household in California, and 400% ofthe Federal poverty line was $62,040. To qualify for the credit one must be a citizen or national ofthe United States or lawfully present in the United States. Sec. 36B(e)(2). Eligib
- 7 - In 1954, Congress modified the mirror tax system and established the "inhabitant rule", under which corporations and individuals whose permanent residence was in the Virgin Islands satisfied their U.S. income tax obligations by paying tax on their worldwide income to the Virgin Islands. Revised Organic Act ofthe Virgin Isl
Under the mirror tax system, the Virgin Islands uses the Code with "Virgin Islands" effectively substituted for any reference to the "United States" (and vice versa). See Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). As the law has developed, the provisions ofthe Code have been made applicable to the Virgin Islands so
Under the mirror tax system, the Virgin Islands uses the Code with "Virgin Islands" effectively substituted for any reference to the "United States" (and vice versa). See Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). As the law has developed, the provisions ofthe Code have been made applicable to the Virgin Islands so
1397 (2006)), which created a tax system for the USVI. This tax system, usually referred to as the mirror code, mirrors the provisions of the Code except that “Virgin Islands” is substituted for “United States” throughout. Id. Originally, corporations and U.S. citizens residing in the USVI who received both U.S. and USVI source income were req
1397 (2006)); see Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). Under the mirror tax system, the Virgin Islands uses the Code with "Virgin Islands" effectively substituted for "United States", and vice versa. See Danbury, Inc., 820 F.2d at 620. Originally, corporations and U.S. citizens residing in the Virgin Islands who received b
1397 (2006)); see Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). Under the mirror tax system, the Virgin Islands uses the Code with “Virgin Islands” effectively substituted for “United States”, and vice versa. See Danbury, Inc., 820 F.2d at 620. Originally, corporations and U.S. citizens residing in the Virgin Islands who received b
1397 (2006) provides that the Code is to be used by the Virgin Islands, with the words “Virgin Islands” being substituted for the words “United States” and vice versa. The revised version of the Code is known as the “mirror code”. Virgin Islands residents are required to file territorial returns with, and pay territorial taxes to, the BIR. Mir
.197 (enacted in 1993) nor in the regulations thereunder, so Recovery Group finds, a suggestion of its meaning in a 1997 amendments' to an unrelated provision--section 1397C, which defines "enterprise zone business" .
1397 (2006) provides that the U.S. Internal Revenue Code is to be used by the Virgin Islands, with "Virgin Islands" substituted for "United States" and vice versa. Section 932(c) provides the taxation and filing requirements for individuals. For tax years 2002 and 2003, that section provided as follows: SEC. 932. COORDINATION OF UNITED STATES
Under the mirror tax system, the Virgin Islands uses the Internal Revenue Code with "Virgin Islands" effectively substituted for any reference to the "United States" (and vice versa). See Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). As the law developed, the provisions of the Internal Revenue Code have been made appl
1397 (2006) provides that the U.S. Internal Revenue Code is to be used by the Virgin Islands, with “Virgin Islands” substituted for “United States” and vice versa. Section 932(c) provides the taxation and filing requirements for individuals. For tax years 2002 and 2003, that section provided as follows: SEC. 932. COORDINATION OF UNITED STATES
Under the mirror tax system, the Virgin Islands uses the Internal Revenue Code with ‘Virgin Islands” effectively substituted for any reference to the “United States” (and vice versa). See Danbury, Inc. v. Olive, 820 F.2d 618, 620 (3d Cir. 1987). As the law developed, the provisions of the Internal Revenue Code have been made appl