April 2, 2008 — The V.I. Internal Revenue Bureau stepped into the ongoing bankruptcy case of Jeffrey Prosser on Monday, filing a protective claim against him in U.S. Bankruptcy Court for $20 million.
A call Tuesday afternoon to IRB Director Gizette Thomas asking for comment was not returned. The filing with the court is a matter of public record. Many aspects of tax records are confidential, however.
The Source spoke Tuesday to James Carroll, the Chapter 7 trustee appointed by the U.S. Bankruptcy Court to manage Prosser's personal estate as it is liquidated and distributed to his creditors. Carroll was asked whether the IRB claim affects the claims of other creditors. Carroll said it could, depending on the details of the claim.
"Tax authorities usually take precedence if they have a valid claim for back taxes," he said.
But penalties and fines are more problematic, and can be placed behind other debt.
The IRB's filing is par for the course in larger bankruptcies, Carroll said.
"They needed to make the claim I believe by yesterday (Monday) or be barred from making a claim later," he said. "It is not unexpected that they would weigh in."
The IRB proof of claim form says the claim is for "taxes or penalties to government units."
The claim is broken down by year as follows.
— 1999: $2,942,372
— 2000: $2,246,112
— 2001: $664,031
— 2002: $1,547,305
— 2003: $2,862,488
— 2004: $2,947,187
— 2005: $2,920,338
— 2006: $4,120,350
TOTAL: $20,250,183.
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