Local Rule Rule 71A.1: Proceedings to Re-determine Deficiency in Income Tax

Rule 71A.1. Proceedings to Re-determine Deficiency in Income Tax

(a) Jurisdiction. The Revised Organic Act of the Virgin Islands, Pub. L. 83-517, Ch. 558, § 22 , 68 Stat. 497, 506, (July 22, 1954), codified to 48 U.S.C. § 1612(a), as amended, gives this Court exclusive jurisdiction over actions arising under the income tax laws of the Virgin Islands, being the Naval Services Appropriation Act of 1922, July 12, 1921, c. 44, §1, 42 Stat. 123, amended by Pub. L. No. 94-392, §5, 90 Stat. 1195, (Aug. 19, 1976), codified at 48 U.S.C. §1397, and sometimes referred to as the "Mirror Code." This rule applies to actions arising under the Mirror Code.

(b) Name of Respondent. The Mirror Code is administered and enforced by the Virgin Islands Bureau of Internal Revenue. 33 V.I.C. §§ 680—683. Any proceeding based on an action of the Virgin Islands Bureau of Internal Revenue Code in administering or enforcing the Mirror Code shall be by petition naming the Director, Virgin Islands Bureau of Internal Revenue, as respondent.

(c) Incorporation of U.S. Tax Court Rules. To the extent consistent with the Mirror Code, the following rules of the United States Tax Court Rules of Practice and Procedure, as amended from time to time, shall apply.

Rule Subject 34(a), (b), and (c) Petition 36 Answer 37 Reply 91 Stipulations for Trial 122 Submission Without Trial 142 Burden of Proof 151 Briefs 155 Computation By Parties For Entry of Decision Partnership Actions Under BBA Section 1101 Rule Subject 255.1 General 255.2 Commencement of Partnership Action 255.4 Other Pleadings 255.6 Identification and Removal of Partnership Representative

(d) Rules of Construction. In applying any rule of the Tax Court incorporated by this rule: the word "Director" shall be substituted for "Commissioner;" and the words "District Court of the Virgin Islands" shall be substituted for "Tax Court." Any provision of the Tax Court rules incorporated by this rule (1) relating to service of a petition or other papers, (2) describing the number of copies of a paper or pleading to be filed, (3) relating to the place or manner of filing a petition, or (4) filing fees, shall not apply.

(e) Application of Other Tax Court Rules by Motion. For actions other than a petition for redetermination of income tax asserted in a notice of deficiency, notice of transferee liability, or a petition to challenge a final partnership adjustment, a party may propose by motion the use of particular rules of the United States Tax Court as in effect at the time of filing the petition which would have been applicable to the matter had it been filed in the United States Tax Court. The order approving the use of such rules shall provide for a reasonable amount of time for the parties to amend their pleadings to conform with such rules. The Court may apply such rules sua sponte on notice to the parties.

(f) Special Rule for Small Tax Cases. For cases in which the amount in dispute under the Mirror Code is less than $50,000, the following Small Tax Cases rules of the Tax Court apply:

Tax Court Rule Subject 170 General 171 Request for Small Tax Case Procedure 173(a)(1), (b), and (c) Pleadings – Petition, Answer 174(b) and (c) Conduct of Trial and Evidence; Briefs Small Tax Cases shall be automatically referred to the Magistrate Judge for disposition under Federal Rule of Civil Procedure 73.

(g) Court as Tax Court for Proceedings Involving Partnership Notices Issued by VIBIR. A petition for readjustment to a notice of final partnership adjustment issued by the Virgin Islands Bureau of Internal Revenue shall be considered in the same manner as if it had been filed in the United States Tax Court for purposes of section 6234(a) of the Mirror Code.