An Act to amend the Internal Revenue Code of 1954 with respect to the tax laws applicable to Guam, and for other purposes
PL 92-606 (H.R.14628), enacted 10/31/1972

1494 
PUBLIC LAW 92-606-OCT. 31, 1972 
[86 STAT. 
u s e prec. 
title 1. 
Street produced south 80 degrees 47 minutes 30.6 seconds east, the 
distance of 523.908 feet to a point on the pierhead line of the 
Delaware River (approved by the Secretary of War on Septem-
ber 10, 1940) ; 
thence extending along the said pierhead line the following 
courses and distances, (1) south 17 degrees 52 minutes 48.5 seconds 
west, 605.262 feet to a point; (2) south 14 degrees 14 minutes 14.7 
seconds west, 1,372.530 feet to a point; (3) south 10 degrees 37 
minutes 35.3 seconds west, 1,252.160 feet to a point; (4) south 8 
degrees 23 minutes 50.4 seconds west, 1,450.250 feet to a point; (5) 
south 2 degrees 22 minutes 45.9 seconds west, 1,221.670 feet to a 
point; (^6) south 1 degree 4 minutes 36 seconds east, 1,468.775 feet 
to a point on the north house line of Catherine Street extended, 
thence extending north 76 degrees 56 minutes 29.2 seconds west, 
the distance of 555.911 feet to the first mentioned point and place 
of beginning is hereby declared not to be a navigable water of 
the United States within the meaning of the Constitution and 
laws of the United States, and the consent of Congress is hereby 
given, for the filling or erection of permanent structures in all or 
any part of the described area. 
SEC. 2. This declaration shall apply only to portions of the above-
described area which are filled or occupied by permanent structures. 
No such filling or erection of structures in the above-described area 
shall be commenced until the plans therefor have been approved by 
the Secretary of the Army who shall, prior to granting sucn approval, 
give consideration to all factors affecting the general public interest 
and the impact of the proposed work on the environment. 
Approved October 31, 1972. 
October 31, 1972 
[H. R. 14628] 
Public Law 92-606 
AN ACT 
To amend the Internal Revenue Code of 1954 with respect to the tax laws 
applicable to Guam, and for other purposes. 
United States 
and Guam. 
Income taxes, 
coordination. 
68A Stat. 291; 
74 Stat. 998. 
26 u s e 931. 
Be it enacted hy tJie Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
SECTION 1. COORDINATION OF UNITED STATES AND GUAM INDI-
VIDUAL INCOME TAXES. 
(a) I N GENERAL.—Subpart D of part I I I of subchapter N of chap-
ter 1 of the Internal Eevenue Code of 1954 (relating to possessions of 
the United States) is amended by adding at the end thereof the follow-
ing new section: 
"SEC. 935. COORDINATION OF UNITED STATES AND GUAM INDI-
VIDUAL INCOME TAXES. 
"(a) APPLICATION OF SECTION.—This section shall apply to any 
individual for the taxable year who— 
"(1) is a Resident of Guam, 
"(2) is a citizen of Guam but not otherwise a citizen of the 
United States, 
" (3) has income derived from Guam for the taxable year and 
is a citizen or resident of the United States, or 
" (4) files a joint return for the taxable year with an individual 
who satisfies paragraph (1), (2), or (3) for the taxable year. 
"(b) 
FILING EEQUIREMENT.— 
"(1) I N GENERAL.—Each individual to whom this section 
J30l»* 
86 STAT. ] 
PUBLIC LAW 92-606-OCT. 31, 1972 
1495 
applies for the taxable year shall file his income tax return for 
the taxable year— 
* 
.?5' 
"(A) with the United States, if he is a resident of the 
United. States, 
"^B) with Guam, if he is a resident of Guam, and 
"(C) if neither subparagraph (A) nor subparagraph (B) 
applies— 
"(i) with Guam, if he is a citizen of Guam but not 
otherwise a citizen of the United States, or 
"(ii) with the United States, if clause (i) does not 
^^^- 
apply. 
^' (2) DETERMINATION DATE.—^For purposes of this section, deter-
minations of residence and citizenship for the taxable year shall 
be made as of the close of the taxable year. 
"(3) SPECIAL RULE FOR JOINT RETURNS.—In the case of a joint 
return, this subsection shall be applied on the basis of the residence 
and citizenship of the spouse who has the greater adjusted gross 
income (determined without regard to community property laws) 
for the taxable year. 
"(c) EXTENT or INCOME TAX LIABILITY.—In the case of any indi-
vidual to whom this section applies for the taxable year— 
"(1) for purposes of so much of this title (other than this 
section and section 7654) as relates to the taxes imposed by this intra. 
chapter, the United States shall be treated as including Guam, 
"(2) for purposes of the Guam territorial income tax, Guam 
shall De treated as including the United States, and 
"(3) such individual is hereby relieved of liability for income 
tax for such year to the jurisdiction (the United States or Guam) 
other than the jurisdiction with which he is required to file under 
subsection (b). 
"(d) SPECIAL RULES FOR ESTIMATED INCOME TAX.—If there is rea-
son to believe that this section will apply to an individual for the 
taxable year, then—• 
"(1) he shall file any declaration of estimated income tax (and 
all amendments thereto) with the jurisdiction with which he 
would be required to file a return for such year under subsection 
(b) if his taxable year closed on the date he is required to file such 
declaration, 
"(2) he is hereby relieved of any liability to file a declaration 
of estimated income tax (and amendments thereto) for such tax-
able year to the other jurisdiction, and 
"(3) his liability lor underpayments of estimated income tax 
shall be to the jurisdiction with which he is required to file his 
return for the taxable year (determined under subsection (b))." 
(b) ADMINISTRATION.—Section 7654 of the Internal Revenue Code 
of 1954 (relating to payment to Guam and American Samoa of pro-
ceeds of tax on coconut and other vegetable oils) is amended to read as 
follows: 
"SEC. 7654. COORDINATION OF UNITED STATES AND GUAM INDI-
VIDUAL INCOME TAXES. 
"(a) GENERAL RULE.—The net collections of the income taxes 
imposed for each taxable year with respect to any individual to whom 
this subsection applies for such year shall be divided between the 
United States and Guam according to the following rules: 
"(1) net collections attributable to United States source income 
shall be covered into the Treasury of the United States ; 
"(2) net collections attributable to Guam source income shall 
be covered into the treasury of Guam; and 
" (3) all other net collections of such taxes shall be covered into 
Qi't -li-Sr- tJi 
Qf.i .q 
,fiinh 
'. ^ ? 'Jf^iJ **• 
68A Stat. 909. 
26 u s e 7654. 
1496 
PUBLIC LAW 92-606-OCT. 31, 1972 
[86 STAT. 
the treasury of the jurisdiction (either the United Sta,tes or Guam) 
Ante. p. 1494. 
with wMch such individual is required by section 935 (b) to 
file 
his 
return for such year. 
This subsection applies to an individual for a taxable year if section 
935 applies to such individual for such year and if such individual has 
(or, in the case of a joint return, such individual and his spouse have 
(A) adjusted gross income of $50,000 or more and (B) gross income of 
$5,000 or more derived from sources within the jurisdiction (either the 
United States or Guam) with which the individual is not required 
under section 935 (b) to 
file 
his return for the year. 
"(b) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
section— 
"(1) NET COLLECTIONS.—In determining net collections for a 
taxable year, appropriate adjustment shall be made for credits 
allowed against the tax liability for such year and refunds made 
of income taxes for such year. 
"Income 
-'(2) INCOME TAXES.—The term 'income taxes' means— 
"(A) with respect to taxes imposed by the United States, 
the taxes imposed by chapter 1, and 
f 
"(B) with respect to Guam, the Guam territorial income 
tax. 
" (3) SOURCE.—The determination of the source of income shall 
be based on the principles contained in part I of subchapter N 
26 use 861 
of chapter 1 (section 861 and following). 
**^' 
"(c) TRANSFERS.—^The transfers of funds between the United States 
and Guam required by tliis section shall be made not less frequently 
than annually. 
"(d) i^IiLiTARY PERSONNEL IN GUAM.—In addition to any amount 
determined under subsection (a), the United States shall pay to Guam 
at such times and in such manner as determined by the Secretary or 
his delegate the amount of the taxes deducted and withheld by the 
26 use 3401 
United States under chapter 24 with respect to compensation paid 
*' *®^- 
to members of the Armed Forces who are stationed in Guam but who 
have no income tax liability to ,Guam with respect to such compen-
sation by reason of the Soldiers and Sailors Civil Relief Act (50 
54 Stat. 1178. 
^ p p xj.S.C, sec. 501 et seq.). 
"(e) REGULATIONS.—The Secretary or his delegate shall prescribe 
such regulations as may be necesrary to carry out the provisions of 
Ante, p. 1494. 
^jjjg gectiou and section 935, including (but not limited to)— 
"(1) such regulations as are necessary to insure that the pro-
visions of this title, as made applicable in Guam by section 31 
72 Stat. 681. 
of the Organic Act of Guam, apply in a manner which is con-
'
* " ^ '
^ 
• 
sistent with this section and section 935, and 
"(2) regulations prescribing the information which the indi-
viduals to whom section 935 may apply shall furnish to the 
Secretary or his delegate." 
(c) CIVIL PENALTY FOR FAILURE To FURNISH INFORMATION.—Sub-
68A Stat. 828; 
chapter B of chapter 68 of the Internal Revenue Code of 1954 
^^e'usc 6671. 
(relating to assessable penalties) is amended by adding at the end 
thereof the following new section: 
"SEC. 6687. ASSESSABLE PENALTIES WITH RESPECT TO INFORMATION 
REQUIRED TO BE FURNISHED UNDER SECTION 7654. 
"In addition to any criminal penalty provided by law, any person 
described in section 7654(a) who is required by regulations prescribed 
under section 7654 to furnish information and who fails to comply 
with such requirement at the time prescribed by such regulations 
unless it is shown that such failure is due to reasonable cause and not 
Ante, p. 1495. 
86 STAT. ] 
PUBLIC LAW 92-606-OCT. 31, 1972 
1497 
to willful neglect, shall pay (upon notice and demand by the Secre-
tary or his delegate and in the same manner as tax) a penalty of $100 
for each such failure." 
(d) AMENDMENT or 
SECTION 31(d) OF THE ORGANIC ACT OF 
GUAM.—^The second sentence of section 31(d) (2) of the Organic Act 
of Guam (48 U.S.C. 1421i) is amended by inserting "not inconsistent 
^^ stat. 681. 
with the regulations prescribed under section 7654(e) of the Internal 
Revenue Code of 1954" and "Needful rules and regulations". 
^nte, p. i49s. 
(e) CORPORATE INCOME TAXES.— 
(1) Section 881 of the Internal Revenue Code of 1954 (relating 
^ ^^^^- ^^^s. 
*' 
to tax on income of foreign corporations not connected with 
United States business) is amended by redesignating subsection 
(b) as subsection (c) and inserting after subsection (a) the fol-
lowing new subsection: 
"(b) EXCEPTION FOR GUAM CORPORATIONS.—For purposes of this 
section, the term 'foreign corporation' does not include a corporation 
"Foreign corpo-
created or organized in Guam or under the law of Guam." 
ration.' 
(2) Section 1442 of such Code (relating to the withholding of 
so stat. iss?. 
tax on foreign corporations) is amended by adding at the end 
thereof the following new subsection: 
"(c) EXCEPTION FOR GUAM CORPORATIONS.—For purposes of this 
section, the term 'foreign corporation' does not include a corporation 
"Foreign cotpo-
created or organized in Guam or under the law of Guam." 
ration." 
(f) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 931(c) of the Internal Revenue Code of 1954 
68A stat. 291. 
(relating to income from sources within possessions of the United 
States) IS amended by inserting "or Guam" after "Puerto Rico". 
(2) The second sentence of section 932(a) of such Code (relat-
ing to citizens of possessions of the United States) is amended by 
inserting "or Guam" after "Puerto Rico". 
(3) Subsection (c) of section 932 of such Code is amended to 
read as follows: 
"(c) 
GUAM.— 
"For provisions relating to the individual income tax in the case 
of Guam, see sections 935 and 7654; see also sections 30 and 31 of 
the Act of August 1, 1950 (48 U.S.C., sees. 1421h and 14211)." 
(4) Section 7701(a) (12) (B) of such Code (relating to per- 
74 stat. 941. 
formance of certain functions in Guam or American Samoa) is 
amended by striking out "chapters 2" and inserting in lieu thereof 
" ""^ "'-' 
"chapters i, 2,". 
(5) The table of sections for subpart D of part I I I of sub-
chapter N of chapter 1 of such Code is amended by adding at the 
end thereof the following: 
"Sec. 935. Coordination of United States and Guam 
individual 
income taxes.". 
(6) The table of sections for subchapter D of chapter 78 of 
such Code, is amended by striking out the item relating to sec-
tion 7654 and inserting in lieu thereof: 
"Sec. 7654. Coordination of United States and Guam 
individual 
income taxes.". 
(7) The table of sections for subchapter B of chapter 68 of such 
Code is amended by adding at the end thereof the following: 
"Sec. 6687. Assessable penalties with respect to information required 
to be furnished under section 7654.". 
SEC. 2. EFFECTIVE DATE. 
The amendments made by section 1 (other than section 1(e)) shall 
apply with respect to taxable years beginning after December 31,1972. 
< .0 ,» K 
1498 
PUBLIC LAW 92-607-OCT. 31, 1972 
[86 STAT. 
The amendments made by section 1(e)(1) shall apply with respect 
to taxable years beginning after December 31, 1971. The amendment 
made by section 1(e) (2) shall take effect on the day after the date of 
the enactment of this Act. 
Approved October 31, 1972. 
Public Law 92-607 
October 31, 1972 
[H. R.17034] 
Supplemental 
Appropriations 
Act, 1973. 
AN ACT 
Making supplemental appropriations for the fiscal year ending June 30, 1973, and 
for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the following 
sums are appropriated out of any money in the Treasury not otherwise 
appropriated, to supply supplemental appropriations (this Act may be 
cited as the "Supplemental Appropriations Act, 1973") for the fiscal 
year ending June 30,1973, and for other purposes, namely; 
CHAPTEK I 
DEPARTMENT OF AGRICULTURE 
RURAL DEVELOPMENT 
FARMERS HOME ADMINISTRATION 
For an additional amount for "Salaries and expenses'', $500,000. 
ENVIRONMENTAL PROGRAMS 
SOIL CONSERVATION SERVICE 
03 bebf 
«ar 
WATERSHED AND FLOOD PREVENTION OPERATIONS 
For an additional amount for "Watershed and flood prevention 
operations" for emergency measures for runoff retardation and soil-
erosion prevention, as provided by section 216 of the Flood Control 
64 Stat. 184. 
Act of 1950 (33 U.S.C. 701b-l), $16,500,000, to remain available 
until expended: Provided, 
That personnel hired or funds expended 
hereunder shall not be charged to any personnel ceiling or monetary 
limitation heretofore or hereafter imposed. 
1 9 7 2 RURAL ENVIRONMENTAL ASSISTANCE PROGRAM 
The 1972 program of soil-building and soil- and water-conserving 
practices previously authorized to be carried out mider sections 7 to 15, 
16(a), and 17 of the Soil Conservation and Domestic Allotment Act, 
approved February 29, 1936^ as amended (16 U.S.C. 590g-590o, 590p 
(a), and 590q) may be carried out through June 30, 1973, and sums 
appropriated by Public Law 92-399 (86 Stat. 607) for such program 
may be used for practices carried out under such program through 
June 30,1973. 
NATIONAL STUDY COMMISSION 
For an additional amount for the National Study Commission 
authorized by section 315 of the Federal Water Pollution Control 
Ante, p. 875. 
Act Amendments of 1972, $200,000: Provided, That this sum shall be 
available only to the extent authorized by law.