V.I. Bureau of Internal Revenue Unveils Penalty Waiver for Taxpayers in 2023

The Virgin Islands Bureau of Internal Revenue (BIR) has launched a tax penalty waiver initiative for the year 2023, offering a significant reprieve to both individual and corporate taxpayers who are behind on their income and gross receipts tax payments.

The waiver program commenced on November 2, 2023, and is set to conclude on December 29, 2023. It is crafted to bolster compliance among taxpayers, motivating them to file all pending gross receipts tax returns by September 2023 and income tax returns for the tax year 2022. To take advantage of the waiver, participants are required to pay off the entirety of their outstanding taxes, including any accrued interest.

Joel Lee, the BIR Director, stated that the waiver is comprehensive, covering all past due periods. This encompasses gross receipts taxes up to September 2023 and both corporate and personal income taxes for the 2022 tax year.

By settling their unpaid taxes, taxpayers can utilize this program to their benefit, steering clear of additional penalties and ensuring compliance with the U.S. Virgin Islands’ tax regulations.

The BIR strongly encourages eligible taxpayers to seize this opportunity to voluntarily regularize their tax status. For detailed information or inquiries regarding the penalty waiver program, taxpayers are invited to reach out to the BIR directly at (340) 773-1040, extension 4854 or 4250.