IRS Adds Puerto Rico Act 22 Beneficiaries to List of High-Priority Tax Audit Candidates

There are myriad potential tax benefits for a US person who becomes a bona fide resident of Puerto Rico. Mayer Brown summarized these rules in a previous Legal Update. For those watching carefully, however, there have been a number of recent events suggesting that how individuals take advantage of these rules is getting heightened scrutiny both from Congress and the Internal Revenue Service. Mark H. Leeds and Juan F. Lopez Valek of the New York office of Mayer Brown examine these recent events and announcements in the attached Legal Update and explore their interrelated meaning for US individuals and businesses that have moved, or are considering a move, to Puerto Rico.