The Attack Surface: Comparing Tax Liabilities
IRS Campaign 685: The Clear and Present Danger
Building Your Fortress: Proactive Compliance
Frequently Asked Questions
Does moving to Portugal protect me from the IRS?
No. As a U.S. citizen, you are subject to U.S. taxation on your worldwide income, regardless of where you live. You must file a U.S. tax return every year. Moving to Portugal changes which country has the primary right to tax certain income, but it does not eliminate your obligations to the IRS.
What is IRS Campaign 685?
It is a targeted audit campaign by the IRS Large Business & International (LB&I) division focused on U.S. citizens who have claimed benefits under Puerto Rico's Act 60 (and its predecessors). The campaign's stated goal is to ensure compliance with the strict bona fide residency requirements. It represents a significant increase in audit risk for all decree holders.
Why is a 'defensive' approach to Act 60 compliance necessary?
Because the IRS is on the offensive. Given the targeted nature of Campaign 685, you must assume your tax return will be scrutinized. A defensive approach involves building an irrefutable case for your bona fide residency from day one, with documentation that can withstand a rigorous audit. It's about preparing for a challenge before it ever arrives.
Ready to Check Your Return?
Comprehensive review + audit preparation package. Know exactly where you stand before the IRS comes knocking.
Activate Your ShieldRelated Topics
This content is for informational purposes only and does not constitute tax, legal, or accounting advice.