26 U.S.C. § 937 : US Code - Section 937: Residence and source rules involving possessions

Search 26 U.S.C. § 937 : US Code - Section 937: Residence and source rules involving possessions

(a) Bona fide resident
For purposes of this subpart, section 865(g)(3), section 876,
section 881(b), paragraphs (2) and (3) of section 901(b), section
957(c), section 3401(a)(8)(C), and section 7654(a), except as
provided in regulations, the term "bona fide resident" means a
person -
(1) who is present for at least 183 days during the taxable
year in Guam, American Samoa, the Northern Mariana Islands,
Puerto Rico, or the Virgin Islands, as the case may be, and
(2) who does not have a tax home (determined under the
principles of section 911(d)(3) without regard to the second
sentence thereof) outside such specified possession during the
taxable year and does not have a closer connection (determined
under the principles of section 7701(b)(3)(B)(ii)) to the United
States or a foreign country than to such specified possession.
For purposes of paragraph (1), the determination as to whether a
person is present for any day shall be made under the principles of
section 7701(b).
(b) Source rules
Except as provided in regulations, for purposes of this title -
(1) except as provided in paragraph (2), rules similar to the
rules for determining whether income is income from sources
within the United States or is effectively connected with the
conduct of a trade or business within the United States shall
apply for purposes of determining whether income is from sources
within a possession specified in subsection (a)(1) or effectively
connected with the conduct of a trade or business within any such
possession, and
(2) any income treated as income from sources within the United
States or as effectively connected with the conduct of a trade or
business within the United States shall not be treated as income
from sources within any such possession or as effectively
connected with the conduct of a trade or business within any such
possession.
(c) Reporting requirement
(1) In general
If, for any taxable year, an individual takes the position for
United States income tax reporting purposes that the individual
became, or ceases to be, a bona fide resident of a possession
specified in subsection (a)(1), such individual shall file with
the Secretary, at such time and in such manner as the Secretary
may prescribe, notice of such position.
(2) Transition rule
If, for any of an individual's 3 taxable years ending before
the individual's first taxable year ending after the date of the
enactment of this subsection, the individual took a position
described in paragraph (1), the individual shall file with the
Secretary, at such time and in such manner as the Secretary may
prescribe, notice of such position.