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Tax Changes: Virgin Islands Residents and Corporate Income.

This bill modifies tax rules for certain residents of the Virgin Islands who own corporations organized there. These changes may alter how their income from these corporations is treated for U.S. tax purposes, potentially impacting their personal finances. The aim is to simplify tax calculations for this specific group.
Key points
Certain bona fide residents of the Virgin Islands who are shareholders of Virgin Islands corporations will not be treated as U.S. persons for specific income inclusions.
This applies if dividends received by such individuals from these corporations would be considered income from Virgin Islands sources.
The new rules are effective for foreign corporation tax years beginning after December 31, 2020.
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Additional Information
Print number: 117_HR_1427
Sponsor: Del. Plaskett, Stacey E. [D-VI-At Large]
Process start date: 2021-02-26
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to provide that certain bona fide residents of the Virgin Islands who are shareholders of corporations organized under the laws of the Virgin Islands are not treated as United States persons for purposes of determining certain inclusions in gross income with respect to such corporations.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1427.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-02-26.

What are the main provisions?

Key points include:

  • Certain bona fide residents of the Virgin Islands who are shareholders of Virgin Islands corporations will not be treated as U.S. persons for specific income inclusions.
  • This applies if dividends received by such individuals from these corporations would be considered income from Virgin Islands sources.
  • The new rules are effective for foreign corporation tax years beginning after December 31, 2020.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Del. Plaskett, Stacey E. [D-VI-At Large].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes