Page:United States Statutes at Large Volume 86.djvu/1539

 86 STAT. ]

PUBLIC LAW 92-606-OCT. 31, 1972

1497

to willful neglect, shall pay (upon notice and demand by the Secretary or his delegate and in the same manner as tax) a penalty of $100 for each such failure." (d) AMENDMENT or

SECTION 31(d)

OF THE ORGANIC ACT OF

GUAM.—The second sentence of section 31(d)(2) of the Organic Act of Guam (48 U.S.C. 1421i) is amended by inserting "not inconsistent with the regulations prescribed under section 7654(e) of the Internal Revenue Code of 1954" and "Needful rules and regulations".

^^ Stat. 681. Ante, p. i49s.

(e) CORPORATE INCOME TAXES.—

(1) Section 881 of the Internal Revenue Code of 1954 (relating ^ ^^^^- ^^^s. to tax on income of foreign corporations not connected with United States business) is amended by redesignating subsection (b) as subsection (c) and inserting after subsection (a) the following new subsection: "(b) EXCEPTION FOR GUAM CORPORATIONS.—For purposes of this section, the term 'foreign corporation' does not include a corporation "Foreign corpocreated or organized in Guam or under the law of Guam." ration.' (2) Section 1442 of such Code (relating to the withholding of so Stat. iss?. tax on foreign corporations) is amended by adding at the end thereof the following new subsection: "(c) EXCEPTION FOR GUAM CORPORATIONS.—For purposes of this section, the term 'foreign corporation' does not include a corporation "Foreign cotpocreated or organized in Guam or under the law of Guam." ration." (f) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Section 931(c) of the Internal Revenue Code of 1954 68A Stat. 291. (relating to income from sources within possessions of the United States) IS amended by inserting "or Guam" after "Puerto Rico". (2) The second sentence of section 932(a) of such Code (relating to citizens of possessions of the United States) is amended by inserting "or Guam" after "Puerto Rico". (3) Subsection (c) of section 932 of such Code is amended to read as follows: "(c)

GUAM.—

"For provisions relating to the individual income tax in the case of Guam, see sections 935 and 7654; see also sections 30 and 31 of the Act of August 1, 1950 (48 U.S.C., secs. 1421h and 14211)." (4) Section 7701(a) (12)(B) of such Code (relating to performance of certain functions in Guam or American Samoa) is amended by striking out "chapters 2 " and inserting in lieu thereof "chapters i, 2,". (5) The table of sections for subpart D of part III of subchapter N of chapter 1 of such Code is amended by adding at the end thereof the following: "Sec. 935. Coordination of United income taxes.".

States and Guam

74 Stat. 941. " ""^ "'-'

individual

(6) The table of sections for subchapter D of chapter 78 of such Code, is amended by striking out the item relating to section 7654 and inserting in lieu thereof: "Sec. 7654. Coordination of United States and Guam income taxes.".

individual

(7) The table of sections for subchapter B of chapter 68 of such Code is amended by adding at the end thereof the following: "Sec. 6687. Assessable penalties with respect to information required to be furnished under section 7654.". SEC. 2. EFFECTIVE DATE.

The amendments made by section 1 (other than section 1(e)) shall apply with respect to taxable years beginning after December 31, 1972.

<.0,» K

�