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Internal Revenue Bureau asks $14.06M for FY2026 as collections climb; refunds and staffing remain key issues
Summary
BIR Director Joel Ailey presented a $14.06 million FY2026 budget request, reported rising collections in FY2025, growing online filing use, and a backlog of refunds and staffing vacancies that agency leaders said they are working to resolve.
Joel Ailey, director of the Virgin Islands Bureau of Internal Revenue, told the Budget Committee on June 10 that the bureau’s FY2026 operating request is $14,060,535, fully funded from the general fund. The bureau said personnel costs dominate the request — about 81 percent — and that it plans to fund 133 positions across the territory (89 on St. Thomas, 43 on St. Croix, one on St. John), with 21 vacancies reported.
Ailey reported year‑to‑date revenue collections increases: total collections for FY2024 were $787 million (about $721.7M to the general fund and $66M to special funds). The bureau told the committee collections for October–May improved from $566 million (FY2024) to $599 million (FY2025) for an increase the bureau attributed largely to positive national economic activity. Ailey cautioned, however, that the national environment remains uncertain and singled out the closing of a major local retailer as having a potential near‑term effect.
On refunds, Ailey said the bureau paid $34.9 million in refunds this fiscal year and had $42 million “in refunds process and ready to be paid.” He also told senators that taxpayers can now file online for 2024 returns — the bureau reported 937 registered users and $648,431 collected via the new platform to date.
The bureau’s budget narrative listed office and IT needs, postage and mailing (communication costs), machine and postage leases, office rent (BIR said the Red Hook main office lease is $734,518 annually), and security and armored transport costs among the most significant non‑personnel items. Director Ailey said the bureau will discontinue a satellite excise office at the St. Croix airport as an austerity measure.
Human resources director Ophelia Hector told the committee the bureau has had difficulty filling revenue‑collection and tax‑examiner roles; the testimony said several of the agency’s hardest‑to‑fill positions require accounting degrees and that training opportunities from the IRS have been limited.
Senators questioned the bureau about accounts‑receivable, audit capacity, vendor and contract costs, and office rent. Ailey and staff said they are working with OMB and Finance on system upgrades and staffing and asked the committee to consider the bureau’s personnel‑heavy request in light of the revenues the bureau brings into government.
