here - Fuerst Ittleman David & Joseph, PL

Case: 11-1612 Document: 003110561288 Page: 12 Date Filed: 06/13/2011
of time; however taxpayers are under no obligation to execute Form 872 and the
IRS cannot force taxpayers to execute same. The majority of the taxpayers that
were (and still are) under audit did not execute Form 872. 5 As a result of the
taxpayers‘ failure to extend the statute of limitations, and undeterred by the clear
provisions of the Internal Revenue Code, the IRS unilaterally changed the rules
regarding the statue of limitations, 6 which has resulted in the instant case.
Indeed, the weapon of choice of the IRS in its battle against taxpayers such
as Mr. Gangi has been an unconstitutional construction of the applicable three year
statute of limitations under IRC § 6501(a). On March 12, 2007, the IRS with
apparent disregard for the United States Constitution issued Notice 2007-19; 2007-
1 C.B. 689; 2007-11 I.R.B. 689 (―Statute of Limitations on Assessment
Concerning Certain Individuals Filing Income Tax Returns With the U.S. Virgin
Islands‖). Notice 2007-19 stated that:
an income tax return filed with the U.S. Virgin Islands by a U.S.
citizen or resident alien (USVI Form 1040) will be deemed to be a
U.S. income tax return of that individual for purposes of section
6501(a), provided that the individual is a covered person. The term
―covered person‖ means a U.S. citizen or resident alien who takes the
position that he or she is a bona fide resident of the U.S. Virgin
Islands, files USVI Form 1040 with the U.S. Virgin Islands, and has
less than $75,000 of gross income for the taxable year.
5
The undersigned represents numerous taxpayers that are under audit, many of
whom did not execute Form 872.
6
See Notice 2007-19 and discussion infra.
FUERST ITTLEMAN, PL
1001 BRICKELL BAY DRIVE, 32 ND FLOOR, MIAMI, FL 33131 • T: 305.350.5690 • F: 305.371.8989 • WWW.FUERSTLAW.COM
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