US Virgin Islands Join IRS Information Sharing Initiative

by Leroy Baker, Tax-News.com, New York

19 October 2004

Officials from the US Internal Revenue Service and the Virgin Islands Bureau of Internal Revenue (VI BIR) have announced the establishment of a new partnership to work together on common tax enforcement issues.

The partnership is part of an effort to enable federal, territorial, state and local tax agencies to join together in ensuring all taxpayers pay the amount of tax that they are legally obligated to pay.

Like the other agencies, the VI BIR will be working with the IRS to combat abusive tax avoidance transactions by sharing information and leveraging resources.

IRS Commissioner Mark W. Everson observed: “This is a logical extension of our existing relationship with states and cities. We are pleased to work with the Virgin Islands Bureau of Internal Revenue to help ensure compliance with the tax laws.”

The scope of the partnership is broader than previous agreements. Additional aspects include the sharing of resources and coordination on issues involving income tax benefits under the Virgin Islands Economic Development Program (EDP).

“The Economic Development Program is good for the territory,” noted Louis M. Willis, Director of the Bureau of Internal Revenue, US Virgin Islands, adding that:

“The Bureau needs all parties involved in the program to be legitimate and doing the right things. We look forward to working with the IRS on this and other tax administration issues.”

The Virgin Islands joins 48 states, the District of Columbia and New York City on the list of tax agencies that have signed partnership agreements with the IRS.

So far in 2004, the IRS has shared leads on approximately 35,000 taxpayers engaged in abusive tax avoidance with state and city authorities.

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