Director Claudette Watson-Anderson reminds all bona fide residents of the Virgin Islands that they are required to file their individual income tax returns in the Virgin Islands with the bureau, according to a press release issued Thursday by the Virgin Islands Bureau of Internal Revenue (BIR).
“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 Director Watson-Anderson. 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.
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 self-employment tax return should be submitted to the IRS. Please do not include payment of self-employment taxes on your Form 1040, which is filed with the BIR.
Watson-Anderson reiterates that there is no electronic filing in the Virgin Islands. Taxpayers must submit the paper return to the V.I. Bureau of Internal Revenue for processing.
For more information about filing requirements for bona fide residents, call the Office of Chief Counsel at 715-1040, ext. 2249 or 714-9312.