Dudley v. Commissioner

In Dudley v. Commissioner, 258 F.2d 182 (3d Cir. 1958), the taxpayer received a notice of deficiency that informed him that he could appeal to the District Court of the Virgin Islands. 258 F.2d at 183. However, he filed a petition for redetermination in the Tax Court of the United States. The Court concluded that the Tax Court has limited jurisdiction, and is authorized only to hear petitions for redetermination after the Secretary of the Treasury of the United States (or his or her delegate) issues a deficiency notice. Id. Because it was the Head of the Tax Division of the Department of Finance of the Government of the Virgin Islands (not a delegate of the U.S. Secretary of the Treasury) that issued the deficiency notice, the Tax Court had no jurisdiction. Id. at 184. The Dudley Court cited S 3811 of the then extant IRC of 1939, which provided: All provisions of the laws of the United States applicable to the administration, collection, and enforcement of the tax imposed by subchapter E of chapter 1 (including the provisions relating to The Tax Court of the United States) . . . shall, in respect to such tax, extend to and be applicable in the Virgin Islands in the same manner and to the same extent as if the Virgin Islands were a State, and as if the termUnited States when used in a geographical sense included the Virgin Islands. 258 F.2d at 186-87. The Court concluded: "It thus appears from section 3811 that Congress understood that the provisions of the internal revenue laws of the United States relating to tax administration and enforcement, especially those relating to the Tax Court, were without application to the Virgin Islands." 258 F.2d at 187.