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section, the term “specified possession” means Guam,
American Samoa, and the Northern Mariana Islands.
(d) Special rules.--For purposes of this section--
(1) Employees of the United States.--Amounts
paid for services performed as an employee of the
United States (or any agency thereof) shall be
treated as not described in paragraph (1) or (2)
of subsection (a).
(2) Determination of source, etc.--The
determination as to whether income is described in
paragraph (1) or (2) of subsection (a) shall be
made under regulations prescribed by the
Secretary.
(3) Determination of residency.--For purposes
of this section and section 876, the determination
of whether an individual is a bona fide resident
of Guam, American Samoa, or the Northern Mariana
Islands shall be made under regulations prescribed
by the Secretary. [Emphasis added.]
C. Positions of The Parties
1. Petitioners’ position
Petitioners contend that the amendments to old section 931
were not in effect for the years in issue; rather, they argue,
old section 931 remained in effect for those years.10
10To be more precise, petitioners assert that there are
three possible interpretations for the overall effect of TRA 1986
secs. 1271, 1272, and 1277, 100 Stat. 2591, 2593, 2600, on old
sec. 931 for the years in issue: (1) Sec. 931 as amended by TRA
1986 sec. 1272 is in effect, but only as to American Samoa; (2)
old sec. 931 remains in effect; or (3) no sec. 931 remains in
effect. Petitioners, however, argue that only interpretation (2)
gives full effect to the terms and conditions of the statute and
to congressional intent, and that is the only interpretation
advocated by petitioners.
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