In re:Birdman, No. 11-1462 (3d Cir. 2012)
Annotate this CaseMarried couples formed Virgin Islands corporations that were limited partners in a VI limited liability limited partnership, Four Points, and derived all of their income from Four Points. The couples assert that they were not bona fide residents of the Virgin Islands in 2006, but that a portion of their income was derived from sources there, I.R.C. 932(a)(1)(A)(ii). Both couples filed 2006 tax returns with the U.S. and with the Virgin Islands, but, rather than paying the Virgin Islands, they paid all taxes to the U.S., claiming that they believed that the IRS would pay the Virgin Islands or that the VIBIR would obtain the amounts from the IRS. The couples filed suit to compel the VIBIR to declare whether the income was derived from sources within the Virgin Islands and, against the U.S., requested refunds. The district court dismissed with respect to the Virgin Islands and transferred the claim against the U.S. to Florida. The Third Circuit affirmed. Taxpayers stated no cause of action against the Virgin Islands and any claims are not ripe, as there has been no administrative action against them. The District Court of the Virgin Islands may transfer VI tax cases to other district courts.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.