here - Fuerst Ittleman David & Joseph, PL

Case: 11-1612 Document: 003110561288 Page: 18 Date Filed: 06/13/2011
States residents file with the IRS, reporting both Virgin Islands and non-Virgin
Islands source income, and paying all tax to the BIR. Mr. Gangi did so pursuant to
IRC § 932(c), and also in accordance with contemporaneous IRS guidance, which
provided, ―If you are a bona fide resident of the Virgin Islands on the last day of
the tax year, you must file your tax return on Form 1040 with the Government of
the Virgin Islands and pay the entire tax due to the Virgin Islands.‖ Tax Guide for
Individuals With Income From U.S. Possessions, at 7 (2001 and 2002). Doc. # 6-2;
A-000250.
In December 2004, the IRS opened an audit on Mr. Gangi for the purpose of
determining whether Mr. Gangi was a USVI bona fide resident for 2000, 2001,
2002, and 2003 tax years. The IRS‘ claims that ―[t]he legitimacy of Mr. Gangi‘s [
] USVI residency for tax purposes us relevant to [its] investigation because, if he
was not a USVI bona fide resident for tax purposes . . . he was required to file
income tax returns with the [IRS], and report all of his income on such U.S. tax
returns.‖ Doc. # 4; A-000099.
The IRS conducted a de facto deposition of Mr. Gangi on October 19, 2006,
as to his purported tax liability to the United States. Approximately six years after
the IRS audit was first opened and three and a half years after interviewing Mr.
Gangi, on February 2, 2010, Internal Revenue Agent Jackie Moss (―Agent Moss‖)
FUERST ITTLEMAN, PL
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