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a corporate taxpayer that was an inhabitant of the USVI. On
August 14, 1984, the taxpayer filed its Federal income tax return
with the BIR for its taxable year which ended on May 31, 1984.
See id. at 208. On September 8, 1987, the IRS mailed a notice of
deficiency to the taxpayer. See id. In Condor Intl., we held
that the notice of deficiency was timely because the taxpayer's
taxable year that ended on May 31, 1984, was a "pre-1987 open
year" within the meaning of section 1277(c)(2)(C) of TRA 1986.
See id. at 217. Additionally, we held that sections 1275(b) and
1277(c)(2) of TRA 1986 do not retroactively tax USVI inhabitants
because the amount of tax owed by any taxpayer is not altered.
See id. at 218. In reaching that conclusion, we held that, prior
to the enactment of TRA 1986, an inhabitant of the USVI would be
required to pay tax on its worldwide income to the BIR. See id.;
accord Danbury, Inc. v. Olive, 820 F.2d 618, 626 n.4 (3d Cir.
1987). We also held that there was no violation of the Due
Process Clause of the Fifth Amendment to the Constitution because
the only difference between taxpayers that were specifically
exempted from the application of section 1275(b) of TRA 1986 by
section 1277(c)(2) of TRA 1986 and taxpayers that were not so
exempted was the agency to which each taxpayer was required to
pay tax. See Condor Intl., Inc. v. Commissioner, supra at 218.
In reaching that conclusion, we relied on the case of Bizcap,
Inc. v. Olive, 892 F.2d at 1167, in which the Court of Appeals
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