[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6316-1]

[Page 213]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Collection
 
Sec. 301.6316-1  Payment of income tax in foreign currency.

    Subject to the provisions of Sec. Sec. 301.6316-3 to 301.6316-5, 
inclusive, that portion of the income tax which is attributable to 
amounts received by a citizen of the United States in nonconvertible 
foreign currency may be paid in such currency--
    (a) For any taxable year beginning on or after January 1, 1955, and 
before January 1, 1964, if such amounts--
    (1) Are disbursed from funds made available to a foundation or 
commission established in a foreign country pursuant to an agreement 
made under the authority of section 32(b) of the Surplus Property Act of 
1944, as amended (50 U.S.C. App. 1641(b)(2)), or reestablished under the 
authority of the Mutual Educational and Cultural Exchange Act of 1961, 
as amended (22 U.S.C. 2451);
    (2) Constitute either a grant made for authorized purposes of the 
agreement or compensation for personal services performed in the employ 
of the foundation or commission;
    (3) Are at least 75 percent of the entire amount of the grant or 
compensation; and
    (4) Are treated as income from sources without the United States 
under the provisions of sections 861 to 864, inclusive, and Sec. Sec. 
1.861-1 to 1.864, inclusive, of this chapter (Income Tax Regulations); 
and
    (b) For any taxable year beginning on or after January 1, 1964, if 
such amounts--
    (1) Are disbursed from funds made available either to a foundation 
or commission, established pursuant to an agreement made under the 
authority of section 32(b) of the Surplus Property Act of 1944, as 
amended, or to a foundation or commission established or continued 
pursuant to an agreement made under the authority of the Mutual 
Educational and Cultural Exchange Act of 1961, as amended; or are paid 
from grants made to such citizen, or to a foundation or an educational 
or other institution, under the authority of the Mutual Educational and 
Cultural Exchange Act of 1961, as amended, or section 104 (h), (j), (k), 
(o), or (p) of the Agricultural Trade Development and Assistance Act of 
1954, as amended (7 U.S.C. 1704 (h), (j), (k), (o), (p));
    (2) Constitute either a grant made for a purpose authorized under 
any such agreement or law, or compensation for personal services 
performed in the employ of any organization engaged in administering any 
program or activity pursuant to any such agreement or law;
    (3) Are at least 70 percent of the entire amount of the grant or 
compensation; and
    (4) Are treated as income from sources without the United States 
under the provisions of sections 861 to 864, inclusive, and Sec. Sec. 
1.861-1 to 1.864, inclusive, of this chapter (Income Tax Regulations).