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

U.S Code last checked for updates: Nov 23, 2024

§ 932.

Coordination of United States and Virgin Islands income taxes

(a)

Treatment of United States residents

(1)

Application of subsection

This subsection shall apply to an individual for the taxable year if—

(A)

such individual—

(i)

is a citizen or resident of the United States (other than a bona fide resident of the Virgin Islands during the entire taxable year), and

(ii)

has income derived from sources within the Virgin Islands, or effectively connected with the conduct of a trade or business within such possession, for the taxable year, or

(B)

such individual files a joint return for the taxable year with an individual described in subparagraph (A).

(2)

Filing requirement

(3)

Extent of income tax liability

(b)

Portion of United States tax liability payable to the Virgin Islands

(1)

In general

(2)

Applicable percentage

(A)

In general

(B)

Virgin Islands adjusted gross income

(3)

Amounts paid allowed as credit

(c)

Treatment of Virgin Islands residents

(1)

Application of subsection

This subsection shall apply to an individual for the taxable year if—

(A)

such individual is a bona fide resident of the Virgin Islands during the entire taxable year, or

(B)

such individual files a joint return for the taxable year with an individual described in subparagraph (A).

(2)

Filing requirement

(3)

Extent of income tax liability

(4)

Residents of the Virgin Islands

In the case of an individual—

(A)

who is a bona fide resident of the Virgin Islands during the entire taxable year,

(B)

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, and

(C)

who fully pays his tax liability referred to in section 934(a) to the Virgin Islands with respect to such income,

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, and allocable deductions and credits shall not be taken into account.

(d)

Special rule for joint returns

(e)

Special rule for applying section to tax imposed in Virgin Islands

(Added Pub. L. 99–514, title XII, § 1274(a), Oct. 22, 1986, 100 Stat. 2596; amended Pub. L. 100–647, title I, § 1012(w)(1)–(3), Nov. 10, 1988, 102 Stat. 3530; Pub. L. 108–357, title VIII, § 908(c)(2), Oct. 22, 2004, 118 Stat. 1656.)

cite as: 26 USC 932