Title 26 — Internal Revenue CodeRelease 119-73
§7651 Administration and collection of taxes in possessions
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 78— - DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE › Subchapter Subchapter D— - Possessions › § 7651
Summary
Unless another part of this subchapter or section 28(a) of the Revised Organic Act of the Virgin Islands or section 30 of the Organic Act of Guam says otherwise, federal tax rules apply in U.S. possessions the same way they do in States. All U.S. laws about figuring, collecting, and enforcing taxes (including penalties) apply in those possessions, and the term "United States" can be read to include them. If a tax is imposed in a possession, it must be collected under the Secretary’s direction and paid into the U.S. Treasury as internal revenue collections. For the Virgin Islands, a reference in section 28(a) to “any tax specified in section 3811” is treated as meaning any tax under chapter 2 or chapter 21. Section 28(a) is read as if it existed before this title and does not change how much income tax a person owes to the United States.
Full Legal Text
Title 26, §7651
Internal Revenue Code — Source: USLM XML via OLRC
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)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)In the case of any tax which is imposed by this title in any possession of the United States—
(A)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)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)This section shall apply notwithstanding any other provision of law relating to any possession of the United States.
(4)(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
Notes & Related Subsidiaries
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.
Amendments
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 section 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 AmendmentAmendment 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 1984 AmendmentAmendment by section 130(c) of Pub. L. 98–369 applicable to payments made after Mar. 1, 1984, 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 Dec. 31, 1984, 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 AmendmentAmendment by Pub. L. 91–513 effective on first day of seventh calendar month that begins after Oct. 26, 1970, 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, Oct. 15, 1977, 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, Mar. 29, 1975, 89 Stat. 26, see Tables] and the Tax Reform Act of 1976 [Pub. L. 94–455, Oct. 4, 1976, 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
October 1, 1977, 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,
May 23, 1977, 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
December 31, 1976, by reason of section 101 and 102 of this Act [amending section 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 section 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.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 7651
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73