Joseph D. Specking, et al. - Page 15




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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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