§7651 — Administration and collection of taxes in possessions
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Statute Text — 26 U.S.C. §7651
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)—
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.
In the case of any tax which is imposed by this title in any possession of the United States—
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
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.
This section shall apply notwithstanding any other provision of law relating to any possession of the United States.
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.
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.
6 Citing Cases
ofthe Virgin Islands (ROA), ch. 558, sec. 28, 68 Stat. at 508 (1954).7 ROA sec. 28(a) provided that corporations and individuals whose permanent residence is in the Virgin Islands satisfied their U.S. income tax obligations by "paying their tax on 7Sec. 7651(5)(B) ofthe Internal Revenue Code of 1954 implemented the inhabitant rule by providing that "For purposes ofthis title * * * section 28(a) of the Revised Organic Act ofthe Virgin Islands shall be effective as ifsuch section had been enacted
7651(5)(B) of the Internal Revenue Code of 1954 implemented the inhabitant rule by providing that “[f]or purposes of this title * * * 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.” See Huff v. Commissioner, 135 T.C. at 224-227, fo
1275(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 liabili