IRS Campaign 685: Why Denver Movers Are a Target
Fortifying Your Bona Fide Residency Claim
The High Cost of Non-Compliance: A Preventable Disaster
Frequently Asked Questions
What is IRS Campaign 685 and should I be worried?
Yes, you should be aware and prepared. IRS Campaign 685 is a targeted audit initiative focused on Act 60 decree holders. It signals a significant increase in enforcement. If you have moved from a high-tax state like Colorado, you are in a higher-risk category. Being worried is less important than being prepared.
How can I prove to the IRS that I am a bona fide resident of Puerto Rico?
You must provide overwhelming evidence that Puerto Rico is your tax home. This includes your physical presence (183+ days), but more importantly, proof of a 'closer connection' to the island than anywhere else. This includes where you vote, bank, see doctors, and where your most cherished personal belongings are located. Documentation is key.
What are the consequences of failing an Act 60 audit?
Failing an audit can be financially ruinous. It typically involves the revocation of your tax decree, payment of back taxes at full U.S. rates, plus substantial penalties and interest. The total liability can easily erase all the financial benefits you sought to gain from relocating.
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This content is for informational purposes only and does not constitute tax, legal, or accounting advice.
