Business

BIR To VI Residents: Don't File Income Taxes Outside Territory; It's Against Local Law

ST. CROIX -- Bureau of Internal Revenue Director Marvin Pickering, in a press release issued on Tuesday, warned who he deemed "bona fide" VI residents not to file taxes outside of the territory, as such action is against local law. Above, Mr. Pickering. Some residents have for years filed their tax returns in the states directly with the IRS, citing the fast turnaround in receiving their returns as the main cause for using the workaround. “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),” cautioned Mr. Pickering. According to the release, 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, it added. Self-employed taxpayers are required to file t...