[Applicability of P.L. 99-177 to IRS Collections for the Virgin Islands and Guam]

GAO reviewed the applicability of the Balanced Budget and Emergency Deficit Control Act to Internal Revenue Service (IRS) collections for Guam and the Virgin Islands. GAO found that: (1) there is no authority under the act to exempt the accounts from being sequestrated; (2) even though these payments may be made to fulfill a federal government trust responsibility, this is not a sufficient basis to consider the payments exempt from sequestration; (3) the payment of IRS collections is provided for under permanent indefinite appropriations; and (4) since there is no specific basis for exemption, both accounts are subject to reduction.