SECTION 3. EFFECTIVE — Internal Revenue Bulletin 2007-11

This notice applies for taxable years ending on or after December 31, 2006. Taxpayers also may choose to apply this notice to a taxable year ending before

March 12, 2007 689 2007–11 I.R.B.

December 31, 2006 as specified in this section 3.

A non-covered person may choose to apply this notice to a taxable year ending before December 31, 2006 by filing U.S. Form 1040 with the IRS at the address provided in section 2, reporting no gross income and no taxable income for that taxable year. Although a Bona Fide Residence-Based Position statement need not be filed for a taxable year ending before December 31, 2006, the non-covered person should clearly note on the first page of U.S. Form 1040 the applicable taxable year and that U.S. Form 1040 is being filed in accordance with this notice.

For example, assume that on March 16, 2007, J, a U.S. citizen and calendar year taxpayer with at least $75,000 of gross income for taxable year 2003, files U.S. Form 1040 with the IRS, taking the position that for taxable year 2003 she does not have any gross income or taxable income for U.S. income tax purposes under section 932(c)(4). J clearly marks U.S. Form 1040 as applying to her taxable year ending December 31, 2003 and as being filed in accordance with Notice 2007–19. Under these circumstances, the 3-year period of limitations under section 6501(a) for taxable year 2003 will expire on March 16, 2010, and the IRS will make no further assessment of income tax for J’s 2003 taxable year after that date except as otherwise authorized by section 6501.

A covered person may choose to apply this notice to a taxable year ending before December 31, 2006 by providing documentation upon examination that establishes to the satisfaction of the Commissioner that the taxpayer is a covered person. Because the USVI Form 1040 filed with the U.S. Virgin Islands is deemed to be a covered person’s U.S. Form 1040, the covered person’s statute of limitations under section 6501(a) will begin to run on the date USVI Form 1040 is filed with the U.S. Virgin Islands.