Fortify Your Act 60 Strategy: Audit Defense for VCs

Regulators, including those in IRS Campaign 685, are actively scrutinizing Act 60 decree holders. Your fund’s structure is your first line of defense. Our service is designed to stress-test your entity formation, income sourcing, and partnership agreements against the criteria used by auditors. We help you identify and fortify potential weak points before they become liabilities in an audit. This proactive approach is critical for any serious investor who understands that the best defense is a strong offense. We help you build a shield around your structure, grounded in the detailed requirements of the law.

In an audit, the burden of proof is on you. You must definitively show that your capital gains are sourced to Puerto Rico and that your carried interest is structured correctly. Act60Shield helps you assemble the robust documentation trail required to defend your tax position. Our system analyzes your transactions and helps you prepare a defense file that substantiates your claims, referencing relevant sections of the tax code and DDEC performance evaluations. This is not just a review; it is the preparation for a rigorous challenge to your compliance status. Being prepared is not optional.

The rules surrounding Act 60 are not static, and enforcement is increasing. Relying on outdated advice or word-of-mouth is a significant risk. Act60Shield provides an authoritative, defense-oriented analysis designed for the current regulatory environment. We help you understand the potential attack vectors an auditor might use, from challenging your bona fide residency to questioning your income sourcing methodologies. By taking compliance seriously now, you protect your fund, your investors, and your personal assets from future challenges. Activate your shield and operate with the confidence that you are prepared.