← Act 60 Shield

Fortify Your Act 60 Defense: A Shield for SaaS Founders

As a SaaS founder under Act 60, you are a target. The IRS and Hacienda are actively auditing decree holders, and your revenue sourcing and IP structure are their primary focus. Act60Shield is built for founders who take compliance seriously and want to prepare a robust defense before an audit notice ever arrives.

Fortify Your Act 60 Defense: A Shield for SaaS Founders

Building an Audit-Proof File for SaaS Revenue

When the IRS launches an audit, particularly under initiatives like Campaign 685, they will demand irrefutable proof that your SaaS income is from foreign sources. You must be prepared to defend your sourcing methodology with meticulous documentation. Act60Shield guides you in assembling a defensive file that includes geolocated IP data, billing address records, and server logs. We help you create a narrative that proves the economic activity and consumption of your service occurred outside Puerto Rico. This isn't just about having the data; it's about presenting it in a way that satisfies auditors and shuts down inquiries quickly. Being unprepared is a risk you cannot afford to take.

Defending Your Intellectual Property Strategy

Your IP is your castle, and under Act 60, it's constantly under siege. Auditors will question the valuation of your IP transfer and challenge the economic substance of your Puerto Rican operations. A weak defense can lead to the reclassification of your income and the loss of your 4% tax rate. Act60Shield helps you document the commercial substance of your on-island activities. This includes evidencing the roles of your local employees in management, development, and support. We help you prepare a transfer pricing study defense that justifies your royalty and licensing arrangements, creating a formidable barrier against auditor challenges.

Proactive Defense in a Hostile Environment

The current enforcement environment is aggressive. Government reports like GAO-26-107225 have put pressure on the IRS to increase audits on Act 60 decree holders. Relying on your original tax decree is not a defense strategy. You must proactively build and maintain a compliance shield. Traditional CPA firms are often reactive, charging $5,000-$25,000 to help after an audit has already begun. Act60Shield provides a proactive framework to prepare for the fight, ensuring every aspect of your SaaS operation—from revenue to IP to residency—is documented, defensible, and ready for the highest level of scrutiny.

Frequently Asked Questions

What is IRS Campaign 685 and why should I care?

IRS Campaign 685 is a targeted audit initiative focused on taxpayers who have claimed benefits under Puerto Rico's tax incentives. As a SaaS founder under Act 60, you are directly in its crosshairs. It signals a coordinated effort to challenge sourcing and residency claims.

My CPA says I'm fine. Isn't that enough?

A CPA's opinion is valuable, but it is not a guarantee against an audit or a substitute for a prepared defense file. Act60Shield is designed to augment your CPA's work by creating the specific, granular documentation required to survive a targeted IRS inquiry.

Can Act60Shield help if I'm already under audit?

While our system is designed for proactive defense, the frameworks and documentation guides can be invaluable in helping you and your legal team organize a response to an existing audit. It helps structure your evidence to address the specific points auditors are trained to attack.

Ready to Check Your Return?

Comprehensive review + audit preparation package. Know exactly where you stand before the IRS comes knocking.

Activate Your Shield

Related Topics

irs campaign 685 explainedact 60 hacienda audit defenseact 60 bona fide residency testact 60 record keeping requirementsact 60 audit survival guide

This content is for informational purposes only and does not constitute tax, legal, or accounting advice.