In a release issued Thursday, Bureau of Internal Revenue Director nominee Joel Lee said bona fide U.S. Virgin Islands residents should file their tax returns in the U.S. Virgin Islands and not with the IRS on the mainland.
“Bona fide residents of the Virgin Islands must not file their individual income tax returns, electronically or by mail, with the Internal Revenue Service (IRS),” Mr. Lee said. “This is a violation of the law. The income tax return is only considered filed on the date that it is received by the Bureau, not the date received by the IRS. Taxpayers who receive erroneous refunds from the IRS will have to repay the erroneous refund issued by the IRS, and will be subject to penalties and interest. The due date for tax returns this year is Monday, April 15, 2019.
The reminder, which has been issued before, comes as Dept. of Finance Commissioner nominee Kirk Callwood said he could not say when tax refunds would be issued.
B.I.R. also reminded taxpayers that the 2018 tax return has been revised. The format has changed significantly, it said, so taxpayers are asked to review the tax return and ensure that the information being provided is accurate.
Taxpayers must use Form 1040 to file their 2018 taxes. Forms 1040A and 1040EZ are no longer available for use by taxpayers. Self-employed taxpayers are required to file two tax returns. The individual income tax return (Form 1040) and the self-employment tax return (Form 1040SS). The Form 1040 is filed with the Bureau. The self-employment tax return must be mailed to the IRS. B.IR. said taxpayers should not include payment of self employment taxes on Form 1040.
Mr. Lee reiterated that there is no electronic filing in the Virgin Islands. Taxpayers must submit or mail the returns to the Bureau for processing.
For more information about filing requirements for bona fide residents, please call the Office of Chief Counsel at 715-1040, ext. 2249 or 714-9312.
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