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Puerto Rico Act 60 vs. USVI EDC: An Audit Defense Perspective

The IRS has publicly declared war on tax incentive non-compliance through its 'Campaign 685.' Choosing between Puerto Rico's Act 60 and the USVI's EDC program isn't just about the benefits—it's about which program you can more effectively defend under audit. Act60Shield is built for decree holders who take compliance seriously and want to fortify their position against government scrutiny.

Puerto Rico Act 60 vs. USVI EDC: An Audit Defense Perspective

Tax Program Structures and Associated Risks

Bona Fide Residency: The Primary Audit Battleground

Economic Substance: Proving Your Business is Legitimately Local

Frequently Asked Questions

What is IRS Campaign 685?

It is a targeted IRS initiative focused on auditing participants of Puerto Rico's tax incentive programs, including Act 60. It signals a significant increase in enforcement and scrutiny, making audit defense more critical than ever. Act60Shield is specifically designed to address the risks highlighted by this campaign.

If I'm audited, does Act60Shield represent me?

Act60Shield is a compliance review and audit defense preparation tool, not a tax or legal representation service. We help you identify and fix potential issues *before* an audit. If you are audited, you will need to hire a qualified tax attorney, but the documentation and analysis provided by our platform can be an invaluable asset to your defense team.

Is the USVI EDC program also being audited?

Yes, while the IRS campaign specifically mentioned Puerto Rico, the underlying principles of enforcing bona fide residency and economic substance apply to all U.S. territories. Participants in the USVI EDC program should assume they are under a similar level of scrutiny and prepare accordingly.

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Related Topics

irs campaign 685 explainedact 60 hacienda audit defenseact 60 bona fide residency testact 60 tax home requirementsact 60 record keeping requirements

This content is for informational purposes only and does not constitute tax, legal, or accounting advice.