here - Fuerst Ittleman David & Joseph, PL

Case: 11-1612 Document: 003110561288 Page: 10 Date Filed: 06/13/2011
STATEMENT OF ISSUES PRESENTED FOR REVIEW
The Instant case presents one main issue: whether the District Court erred in
concluding that enforcing the IRS summonses would not result in an abuse of its
process? In addressing this issue this Court will have to examine the
constitutionality of the IRS‘ position that the statute of limitations provision
contained in IRC § 6501 only applies (for the years at issue) to those United States
Citizens residing in the United States Virgin Islands (―USVI‖) who had income
less than $75,000. The Court will also have to examine whether the District Court
erred in concluding that Appellant failed to demonstrate institutional bad faith on
the part of the IRS.
INTRODUCTION AND STATEMENT OF THE CASE
To quote the Government of the Virgin Islands:
This case is one small but important battle in a long-running war
being waged by the Internal Revenue Service (―IRS‖) on an important
economic development program of the Government of the U.S. Virgin
Islands (―Government‖). Although Congress has repeatedly endorsed
the program - which relies upon tax incentives that Congress created
specifically to promote the program‘s success and thus reduce the
need for federal subsidies to the Virgin Islands - the IRS has long
been hostile. In an apparent effort to chill interest in those tax
incentives, the IRS has launched protracted audits of hundreds of
program participants—and in so doing has deterred participation by
many existing and potential participants, including many who could
legitimately claim the program‘s tax benefits (emphasis added).
FUERST ITTLEMAN, PL
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