Time to be disregarded
(a) In the case of an individual serving in the Armed Forces of the United States, or serving in support of such Armed Forces, in an area designated by the President of the United States by Executive order as a “combat zone” for purposes of section 112 of the Virgin Islands income tax law, at any time during the period designated by the President by Executive order as the period of combatant activities in such zone for purposes of such section, or hospitalized outside the United States as a result of injury received while serving in such an area during such time, the period of service in such area, plus the period of continuous hospitalization outside the United States attributable to such injury, and the next 180 days thereafter, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability (including any interest, penalty, additional amount, or addition to the tax) of such individual—
(1) whether any of the following acts was performed within the time prescribed therefor—
(A) filing any return of income tax;
(B) payment of any income tax or any installment thereof or of any other liability to the Virgin Islands in respect thereof;
(C) filing a petition with the district court for redetermination of a deficiency, or for review of a decision rendered by the district court;
(D) allowance of a credit or refund of any tax;
(E) filing a claim for credit or refund of any tax;
(F) bringing suit upon any such claim for credit or refund;
(G) assessment of any tax;
(H) giving or making any notice or demand for the payment of any tax, or with respect to any liability to the Virgin Islands in respect of any tax;
(I) collection, by the Director, by levy or otherwise, of the amount of any liability in respect of any tax;
(J) bringing suit by the Virgin Islands, or any officer on its behalf, in respect of any liability in respect of any tax; and
(K) any other act required or permitted under the internal revenue laws specified in regulations prescribed under this section by the Director;
(2) the amount of any credit or refund (including interest).
Exceptions
(b)
(1) Tax in jeopardy; bankruptcy and receiverships; and transferred assets. Notwithstanding the provisions of subsection (a) of this section any action or proceeding authorized by section 1351 of this title (regardless of the taxable year for which the tax arose), chapter 37 of this title or chapter 39 of this title, as well as any other action or proceeding authorized by law in connection therewith, may be taken, begun, or prosecuted. In any other case in which the Director determines that collection of the amount of any assessment would be jeopardized by delay, the provisions of subsection (a) of this section shall not operate to stay collection of such amount by levy or otherwise as authorized by law. There shall be excluded from any amount assessed or collected pursuant to this paragraph the amount of interest, penalty, additional amount, and addition to the tax, if any, in respect of the period disregarded under subsection (a) of this section. In any case to which this paragraph relates, if the Director is required to give any notice to or make any demand upon any person, such requirement shall be deemed to be satisfied if the notice or demand is prepared and signed, in any case in which the address of such person last known to the Director is in an area for which United States post offices under instructions of the Postmaster General are not, by reason of the combatant activities, accepting mail for delivery at the time the notice or demand is signed. In such case the notice or demand shall be deemed to have been given or made upon the date it is signed.
(2) Action taken before ascertainment of right to benefits. The assessment or collection of any internal revenue tax or of any liability to the Virgin Islands in respect of any internal revenue tax, or any action or proceeding by or on behalf of the government of the United States Virgin Islands in connection therewith, may be made, taken, begun, or prosecuted in accordance with law, without regard to the provisions of subsection (a) of this section, unless prior to such assessment, collection, action, or proceeding it is ascertained that the person concerned is entitled to the benefits of subsection (a) of this section.