Page:United States Statutes at Large Volume 100 Part 3.djvu/792

 100 STAT. 2600

PUBLIC LAW 99-514—OCT. 22, 1986

credits allowed against the tax liability and refunds made of income taxes for the taxable year. "(2) SPECIFIED POSSESSION.—The term 'specified possession' -^ means Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands. "(c) TRANSFERS.—The transfers of funds between the United States and any specified possession required by this section shall be made not less frequently than annually. "(d) FEDERAL PERSONNEL.—In addition to the amount determined under subsection (a), the United States shall pay to each specified possession at such times and in such manner as determined by the Secretary— "(1) the amount of the taxes deducted and withheld by the United States under chapter 24 with respect to compensation J paid to members of the Armed Forces who are stationed in such possession but who have no income tax liability to such possesg sion with respect to such compensation by reason of the Soldiers' and Sailors' Civil Relief Act (50 App. U.S.C. 501 et seq.), and e "(2) the amount of the taxes deducted and withheld under « chapter 24 with respect to amounts paid for services performed as an employee of the United States (or any agency thereof) in a specified possession with respect to an individual unless section 931 or 932(c) applies. •'(e) REGULATIONS.—The Secretary shall prescribe such regulacions as may be necessary to carry out the provisions of this section and sections 931 and 932, including regulations prohibiting the rebate of taxes covered over which are allocable to United States source income and prescribing the information which the individuals to whom such sections may apply shall furnish to the Secretary." (b) CLERICAL AMENDMENT.—The table of sections for subchapter D of chapter 78 is amended by striking out the item relating to section 7654 and inserting in lieu thereof the following: "Sec. 7654. Coordination of United States and certain possession individual income taxes."

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PART IV—EFFECTIVE DATE

SEC. 1277. EFFECTIVE DATE.

(a) IN GENERAL.—Except as otherwise provided in this section, the amendments made by this subtitle shall apply to taxable years beginning after December 31, 1986. (b) SPECIAL RULE FOR GUAM, AMERICAN SAMOA, AND THE NORTHERN MARIANA ISLANDS.—The amendments made by this subtitle

shall apply with respect to Guam, American Samoa, or the Northern Mariana Islands (and to residents thereof and corporations created or organized therein) only if (and so long as) an implementing agreement under section 1271 is in effect between the United States and such possession. (c) SPECIAL RULES FOR THE VIRGIN ISLANDS.—

(1) IN GENERAL.—The amendments made by section 1275(c) thereof and corporations created or organized therein) only if i the United States and the Virgin Islands with respect to the
 * shall apply with respect to the Virgin Islands (and residents
 * (and so long as) an implementing agreement is in effect between

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