(a) Petition to District Court. If the Director determines that there is a deficiency in respect of the tax imposed by this chapter, the Director is authorized to send notice of such deficiency to the donor by certified mail. Within 90 days after such notice is mailed (not counting Saturday, Sunday, or legal holiday as the ninetieth day), the donor may file a petition with the District Court for a redetermination of the deficiency. No assessment of a deficiency in respect of the tax imposed by this chapter and no distraint or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the donor, nor until the expiration of such 90-day period, nor, if a petition has been filed with the District Court, until the decision of the District Court has become final. The making of such assessment or the beginning of such proceeding or distraint during the time such prohibition is in force may be enjoyed by a proceeding in the proper court. If the notice is addressed to a donor outside the Virgin Islands, the period specified in this paragraph shall be one hundred and fifty days in lieu of ninety days.
(b) Collection of deficiency fund by District Court. If the donor files a petition with the District Court, the entire amount redetermined as the deficiency by the decision of the District Court which has become final shall be assessed and shall be paid upon notice and demand from the collector. No part of the amount determined as a deficiency by the Director but disallowed as such by the decision of the District Court which has become final shall be assessed or be collected by distraint or by proceeding in court with or without assessment.
(c) Failure to file petition. If the donor does not file a petition with the District Court within the time prescribed in subsection (a) the deficiency, notice of which has been mailed to the donor, shall be assessed, and shall be paid upon notice and demand from the collector.
(d) Waiver of restriction. The donor shall at any time have the right, by a signed notice in writing filed with the Director, to waive the restrictions provided in subsection (a) on the assessment and collection of the whole or any part of the deficiency.
(e) Increase of deficiency after notice mailed. The District Court shall have jurisdiction to redetermine the correct amount of the deficiency even if the amount so redetermined is greater than the amount of the deficiency, notice of which has been mailed to the donor, and to determine whether any additional amount or addition to the tax should be assessed, if claim therefor is asserted by the Director at or before the hearing or a rehearing.
(f) Further deficiency letters restricted. If the Director has mailed to the donor notice of a deficiency as provided in subsection (a) of this section, and the donor files a petition with the District Court within the time prescribed in such subsection, the Director shall have no right to determine any additional deficiency in respect of the same calendar year, except in the case of fraud, and except as provided in subsection (c) of this section, relating to assertion of greater deficiencies before the District Court. If the donor is notified that, on account of a mathematical error appearing upon the face of the return, an amount of tax in excess of that shown upon the return is due, and that an assessment of the tax has been or will be made on the basis of what would have been the correct amount of tax but for the mathematical error, such notice shall not be considered (for the purposes of this subsection, or of subsection (a) of this section, prohibiting assessment and collection until notice of deficiency has been mailed) as a notice of deficiency, and the donor shall have no right to file a petition with the District Court based on such notice, nor shall such assessment or collection be prohibited by the provisions of subsection (a) of this section.
(g) Extension of time for payment of deficiencies. Where it is shown to the satisfaction of the Director that the payment of a deficiency upon the date prescribed for the payment thereof will result in undue hardship to the donor, the Director, under regulations prescribed by the Director (except where the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax), may grant an extension for the payment of such deficiency or any part thereof for a period not in excess of eighteen months, and, in exceptional cases, for a further period not in excess of twelve months. If an extension is granted, the Director may require the donor to furnish a bond in such amount, not exceeding double the amount of the deficiency, and with such sureties, as the Director deems necessary, conditioned upon the payment of the deficiency in accordance with the terms of the extension.
(h) Address for notice of deficiency. In the absence of notice to the Director of the existence of a fiduciary relationship, notice of a deficiency in respect of a tax imposed by this chapter, if mailed to the donor at his last known address, shall be sufficient for the purposes of this chapter even if such donor is deceased, or is under a legal disability.