# 26 U.S.C. § 7651: Administration and collection of taxes in possessions

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s7651>. Cite pinpoints as 26 U.S.C. § 7651(a)(1).

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)—

## § 7651(1) Applicability of administrative provisions

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.

## § 7651(2) Tax imposed in possession

In the case of any tax which is imposed by this title in any possession of the United States—

**§ 7651(2)(A) Internal revenue collections.** 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

**§ 7651(2)(B) Applicable laws.** 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.

## § 7651(3) Other laws relating to possessions

This section shall apply notwithstanding any other provision of law relating to any possession of the United States.

## § 7651(4) Virgin Islands

**§ 7651(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.

**§ 7651(4)(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.

## Leading cases

- [Dudley v. Commissioner, 258 F.2d 182 (3rd Cir. 1958)](https://www.courtlistener.com/opinion/245858/george-h-t-dudley-v-commissioner-of-internal-revenue/)
- [Bizcap, Inc. v. Olive, 892 F.2d 1163 (3rd Cir. 1989)](https://www.courtlistener.com/opinion/8984503/bizcap-inc-v-olive/)
- [United States v. Bardina, 365 F. Supp. 459 (S.D.N.Y. 1973)](https://www.courtlistener.com/opinion/8824164/united-states-v-bardina/)

## Connections

Cites: none

Cited by: § 1403 Miscellaneous provisions; § 7652 Shipments to the United States

Derived from: 1939 § 3811

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 906
- 1970-10-27: [Pub. L. 91-513](/26/act/91-513.md), 84 Stat. 1293
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834
- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 661
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2598
- 2007-12-29: [Pub. L. 110-172](/26/act/110-172.md), 121 Stat. 2487