Opinion ID: 868140
Heading Depth: 4
Heading Rank: 1

Heading: Claims Against the IRS

Text: In late 2009 and early 2010, Taxpayers were issued tax prepayment deficiency notices by the IRS challenging their claims of bona fide residency in the Virgin Islands. In separate proceedings, Taxpayers challenged the deficiency notices in the District Court of the Virgin Islands. The District Court granted the IRS‘s motion to dismiss on the grounds that the Tax Court was the only proper forum for their suits against the IRS and therefore the District Court of the Virgin Islands lacked subject matter jurisdiction to adjudicate the dispute.4 3 McHenry claimed bona fide residency in 2001 and 2002. The Coopers claimed bona fide residency in 2002 and 2003. McGrogan and Huff claimed bona fide residency in 2002, 2003, and 2004. 4 The courts below issued certifications of final judgments under Federal Rule of Civil Procedure 54(b) as to the dismissals of the claims against the IRS brought by the Coopers, McHenry, and Huff. 7 Each Taxpayer has also filed redetermination petitions in the Tax Court. Those proceedings are currently pending.