Defend Your Act 60 Crypto Assets from Audits

IRS Campaign 685 is not a distant threat; it is an active and ongoing initiative targeting Puerto Rico Act 60 participants. A key focus of this campaign is the proper sourcing of income and gains, particularly from easily transportable assets like cryptocurrency. An incorrect allocation of pre-move and post-move gains can trigger an audit. Act 60 Shield is built with this threat in mind. Our system is designed to meticulously document and verify the sourcing of every crypto asset, creating an audit-ready file that substantiates your tax position. We operate on the principle that the best defense is a proactive one, especially when facing targeted enforcement actions from federal agencies.

In an audit scenario, every detail matters. The way you classify your digital assets—be it as securities, commodities, or utility tokens—will be intensely scrutinized. Misclassification can lead to a recharacterization of your gains and significant tax liabilities. For instance, what you consider a capital asset might be viewed by the IRS as a source of ordinary income, invalidating its eligibility for Act 60 benefits. Act 60 Shield cross-references your portfolio against regulatory guidance and tax court precedents to build a defensible classification for each asset. This is not just about compliance; it is about building a fortified position that can withstand challenges, a service for which traditional firms may charge upwards of $25,000.

Decentralized Finance (DeFi) activities are a primary area of risk for Act 60 decree holders. The lack of clear guidance and complex nature of these transactions make them a prime target for auditors. Income from liquidity pools, yield farming, and airdrops must be correctly identified, valued, and sourced. Failure to do so can jeopardize your entire decree. Act 60 Shield is designed to systematically uncover and document these taxable events. It provides the detailed transaction-level evidence needed to defend your reporting in an audit. In a market where most decree holders find help through word-of-mouth, our tool offers a systematic and authoritative solution for those who take compliance with the utmost seriousness.