Wyden Urges IRS to Investigate Act 60 Tax Scheme
In an April 29 letter sent to IRS Chief Tax Compliance Officer Jarod Koopman, Senator Wyden detailed his committee’s investigation into the compliance of wealthy U.S. persons who established residency in Puerto Rico to take advantage of its Act 60 tax exemption, also known as the “PR tax grant.”
The investigation focuses on situations in which taxpayers move to Puerto Rico, establish residency, and then sell appreciated property, claiming the resulting gain is Puerto Rican source income not subject to U.S. tax. Wyden’s letter describes this as a “serious misapplication of U.S. tax laws” that results in significant underpayment of taxes.
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