Act 60 Self-Employment Tax Defense | Protect Your Decree

IRS Campaign 685 and the Focus on SE Tax

The IRS has publicly announced its focus on Act 60 compliance through initiatives like Campaign 685. A key area of this scrutiny is the proper payment of self-employment taxes. The government is actively looking for decree holders who incorrectly claim exemptions from SE tax on their PR-sourced income. An audit can be a stressful and costly process. Act60Shield is designed to fortify your tax position by providing a defensive review of your SE tax calculations and income sourcing. We help you identify and address potential weaknesses before they attract unwanted attention from tax authorities. This proactive stance is the first line of defense in protecting your assets and your decree.

Building Your Audit Defense File

In the event of an audit, the burden of proof is on you to demonstrate that your income was correctly sourced to Puerto Rico. This requires meticulous record-keeping and a clear understanding of the Totalization Agreement. Our service goes beyond a simple review; it's designed to help you build a robust defense file. We analyze your situation and provide a report that can serve as critical documentation to substantiate your tax position. While traditional CPA firms can charge up to $25,000 for audit defense, our proactive service is designed to prepare you ahead of time, potentially reducing future costs and stress. Taking compliance seriously means preparing for the worst-case scenario.

Authoritative Protection for Serious Decree Holders

Act60Shield is not for everyone. It is for the discerning decree holder who understands that compliance is not a passive activity but an active defense. We provide an authoritative, in-depth analysis that is designed to withstand scrutiny. Our process examines the fine points of your self-employment activities, ensuring your position is defensible under both U.S. and Puerto Rico tax law. In a digitally underserved market, we provide the serious, protective oversight that high-net-worth individuals require. This content is for informational purposes only and does not constitute tax, legal, or accounting advice.

Frequently Asked Questions

Can you guarantee I won't be audited?

No service can guarantee you will not be audited. However, our service is designed to identify and help you correct potential red flags related to self-employment tax, which can help reduce the likelihood of a negative audit outcome. It is a tool for proactive defense.

Is this service considered tax advice?

No. Act60Shield provides a detailed compliance review and identifies potential risks. It does not constitute tax, legal, or accounting advice. We recommend sharing our report with your legal and tax advisors to formulate your defense strategy.

What is the Totalization Agreement?

It's a formal agreement between the U.S. Social Security Administration and the tax authorities of another country—in this case, Puerto Rico—to coordinate SE tax coverage for workers who have earned income in both countries. It generally ensures you only pay SE taxes to one jurisdiction.

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Defend Your Decree: Self-Employment Tax Under Act 60