Judith S. Coffey, et al. v. Commissioner of Internal Revenue

The three-year statute of limitations established by Section 6501(a) of the Internal Revenue Code is triggered by filing “the [tax] return required to be filed by the taxpayer.” Under Section 932(c)(2) of the Code, a “bona fide resident” of the U.S. Virgin Islands is required to file her U.S. income tax return with the Virgin Islands Bureau of Internal Revenue. The question presented in this Petition is: Whether a Form 1040 (U.S. Individual Income Tax Return) filed with the U.S. Virgin Islands Bureau of Internal Revenue (“VIBIR”) pursuant to Section 932(c) (2) is the “return required to be filed by the taxpayer” commencing the statute of limitations on assessment under Section 6501(a), even if it is subsequently determined that the taxpayer was not a bona fide resident of the Virgin Islands.