Lawmakers urge IRS to crack down on wealthy Americans allegedly dodging taxes in Puerto Rico
CBSN
A group of Democratic House members is demanding the Internal Revenue Service accelerate its investigation into wealthy Americans who are allegedly illegally taking advantage of a generous tax incentive in Puerto Rico.
Rep. Nydia Velazquez, Democrat of New York, and a dozen colleagues sent a letter to the IRS late last week calling on the IRS to crack down on the noncompliant behavior of about 100 rich Americans claiming extraordinary tax breaks under what's known as Act 60, which benefits Americans who relocate to Puerto Rico and become bona fide residents. In 2019, Act 60 consolidated two tax havens, Act 22, which applies to individual investors, and Act 20, used for export services companies.
The provision provides these new residents of Puerto Rico with a 100% federal tax exemption from Puerto Rico-sourced income, interest, dividend and capital gains income.
