Fortify Your Tax Position: Moving from Miami to Puerto Rico with Act 60 Shield

The IRS has publicly announced its focus on Act 60 participants through Campaign 685, signaling a new era of scrutiny. This initiative specifically targets compliance with the bona fide residency rules and the sourcing of income. For those moving from a high-profile location like Miami, the assumption of audit risk should be high. Act60Shield is designed to help you build a robust defense by stress-testing your compliance against the very issues the IRS is examining. We help you prepare for the fight before it begins, ensuring your documentation and tax positions are defensible.

Your entire Act 60 benefit structure rests on your status as a bona fide resident of Puerto Rico. This is more than just spending 183 days on the island; it involves a detailed analysis of your tax home and closer connections. A DDEC Performance Evaluation of the tax incentives program emphasized the importance of strict compliance with these rules. Act60Shield provides a framework for documenting your residency beyond any doubt, creating a clear and convincing record that can withstand scrutiny from tax authorities. We help you build a fortress of evidence around your residency claim.

A common audit tactic is to challenge the sourcing of your income, particularly capital gains and income from services. The distinction between pre-move and post-move appreciation, or whether services were truly performed in Puerto Rico, can be a major point of contention. Failing to defend your position can lead to the recharacterization of your income and significant tax liabilities. Act60Shield focuses on creating an unassailable record of your financial activities, providing the documentation needed to protect your assets and defend the tax treatment of your income under Act 60.