Bona fide residents of the U.S. Virgin Islands file a Virgin Islands tax return with the Virgin Islands Bureau of Internal Revenue (VIBIR) — not with the IRS.
U.S. residents with income allocable to the U.S. Virgin Islands file Form 8689 with their regular Form 1040.
Bona Fide Resident of the U.S. Virgin Islands
If you are a bona fide resident of the U.S. Virgin Islands:
File your tax return with the Virgin Islands Bureau of Internal Revenue (VIBIR)
Do not file the same return with the IRS
Although U.S. tax laws and tax rates apply, the VIBIR and the IRS are separate entities.
How to Get U.S. Virgin Islands Tax Forms
To obtain Virgin Islands tax forms:
Visit the Virgin Islands Bureau of Internal Revenue website
Download the appropriate U.S. Virgin Islands tax return
U.S. Resident With Virgin Islands Income
If you are a U.S. resident and earned income allocable to the U.S. Virgin Islands:
File Form 8689
Attach it to your Form 1040
File the return with the IRS
Form 8689 is used to allocate income between the United States and the U.S. Virgin Islands.