26 USC 932 - Coordination of United States and Virgin Islands income taxes

Editorial Notes

Prior Provisions

A prior section 932, acts Aug. 16, 1954, ch. 736, 68A Stat. 292; Nov. 13, 1966, Puspan. L. 89–809, title I, § 103(m), 80 Stat. 1554; Oct. 31, 1972, Puspan. L. 92–606, § 1(f)(2), (3), 86 Stat. 1497; Apr. 7, 1986, Puspan. L. 99–272, title XII, § 12103(a), 100 Stat. 285, related to income taxation of citizens of possessions of the United States, prior to repeal by Puspan. L. 99–514, title XII, § 1272(d)(1), Oct. 22, 1986, 100 Stat. 2594.

Amendments

2004—Subsecs. (a)(1)(A)(i), (c)(1)(A), (4)(A). Puspan. L. 108–357 substituted “during the entire taxable year” for “at the close of the taxable year”.

1988—Subsec. (c)(2). Puspan. L. 100–647, § 1012(w)(3), substituted “an income tax return” for “his income tax return”.

Subsec. (c)(4). Puspan. L. 100–647, § 1012(w)(2), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “In the case of an individual who is a bona fide resident of the Virgin Islands at the close of the taxable year and who, on his return of income tax to the Virgin Islands, reports income from all sources and identifies the source of each item shown on such return, for purposes of calculating income tax liability to the United States gross income shall not include any amount included in gross income on such return.”

Subsec. (e). Puspan. L. 100–647, § 1012(w)(1), substituted current heading for “Section not to apply to tax imposed in Virgin Islands” and amended text generally. Prior to amendment, text read as follows: “This section shall not apply for purposes of determining income tax liability incurred to the Virgin Islands.”

Statutory Notes and Related Subsidiaries

Effective Date of 2004 Amendment

Amendment by Puspan. L. 108–357 applicable to taxable years ending after Oct. 22, 2004, see section 908(d)(1) of Puspan. L. 108–357, set out as an Effective Date note under section 937 of this title.

Effective Date of 1988 Amendment

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date

Enactment of section 932 and repeal of prior section 932 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 1277 of Puspan. L. 99–514, set out as an Effective Date of 1986 Amendment note under section 931 of this title.

Regulations

Puspan. L. 99–514, title XII, § 1274(c), Oct. 22, 1986, 100 Stat. 2598, as amended by Puspan. L. 100–647, title I, § 1012(w)(4), Nov. 10, 1988, 102 Stat. 3530, provided that:

“The Secretary of the Treasury or his delegate shall prescribe such regulations as may be necessary or appropriate for applying the Internal Revenue Code of 1986 [this title] for purposes of determining tax liability incurred to the Virgin Islands.”

Authority To Impose Nondiscriminatory Local Income Taxes

Puspan. L. 99–514, title XII, § 1274(span), Oct. 22, 1986, 100 Stat. 2597, provided that:

“Nothing in any provision of Federal law shall prevent the Virgin Islands from imposing on any person nondiscriminatory local income taxes. Any taxes so imposed shall be treated in the same manner as State and local income taxes under section 164 of the Internal Revenue Code of 1954 [now 1986] and shall not be treated as taxes to which section 901 of such Code applies.”