In one case, an individual had used money owed to the government to buy a Maserati and a Bentley, and roughly 100 high-income people tried to get favorable tax treatment through Puerto Rico without meeting certain tax requirements. Many of those cases are now facing criminal investigation.
The Internal Revenue Service announced its plan to pursue as many as 100 criminal investigations into potential abuses of Puerto Rico’s Act 20/22/60 tax incentive programs.
In a July 14, 2023, release the IRS revealed that thanks to Inflation Reduction Act resources:
It Recently Identified About 100 High-Income Individuals Claiming Benefits In Puerto Rico Without Meeting The Residence And Source Rules Involving U.S. Possessions.
"These wealthy individuals are attempting to avoid U.S. taxation on U.S. source income, and we expect many of these cases to proceed to criminal investigation."
In addition to targeting high-income taxpayers improperly claiming benefits under Act 20/22/60, the IRS will investigate the professionals who assisted the taxpayers at issue.
The IRS will attempt to contact and interview accountants, attorneys, financial advisors, and other individuals who promoted the Puerto Rico residency programs.
Taxpayers And Professional Advisors Contacted By The
IRS As Part Of This Enforcement Effort Should Engage Experienced Tax Counsel Before Speaking To The IRS!
Contact the Tax Lawyers at
Marini& Associates, P.A.
Read more at: Tax Times blog