Wyden Sends Puerto Rico Act 60 Probe to IRS

The Puerto Rico Act 60 IRS analysis runs entirely under federal law, not Commonwealth law. Your Act 60 decree from Puerto Rico’s Department of Economic Development and Commerce (DDEC) is a Commonwealth grant. It does not, by itself, determine your federal tax treatment. The IRS makes its own determination under IRC §937 and Treasury Regulation §1.937-1, and that determination is what controls whether your income qualifies for §933 exclusion and the Puerto Rico Act 60 IRS benefits you’re trying to claim.

There are three tests, and you must satisfy all three for the entire taxable year to be a bona fide resident.

The first is the presence test. The default rule is 183 days physically in Puerto Rico during the taxable year. But §937 also offers four alternatives: (1) no more than 90 days in the US; (2) no more than 90 days of US presence and less than $3,000 of earned US income; (3) more days in PR than in the US, plus no permanent connection to the US; or (4) the year-of-move special rule. Most relocators use the 183-day rule because it’s the simplest, but it’s also the most punishing. Days are counted the way the IRS counts them: any day where you set foot in Puerto Rico for any part of that calendar day counts as a PR day, with narrow exceptions for medical evacuation and disaster relief. Days on the US Virgin Islands, on cruise ships in international waters, or in the British Virgin Islands do not count as Puerto Rico days. We’ve seen Puerto Rico Act 60 IRS audits decided on a five-day shortfall.

The second is the tax home test. Your tax home must be in Puerto Rico for the entire year. “Tax home” is the same concept used in §911 for foreign earned income — it’s your principal place of business or, if you don’t have one, your regular abode. If you’re a fund manager and your investment committee meets in Manhattan twice a month, the IRS will argue your principal place of business is New York. If you’re a consultant and your only client is in California, your tax home is wherever you regularly perform the work. The Puerto Rico Act 60 IRS audit team specifically looks for clients whose decree says “export services” but whose calendar says “Manhattan.”

The third is the closer connection test. You must have a closer connection to Puerto Rico than to the US or any foreign country. This is a totality-of-the-facts test. The regs and the IRS’s Audit Technique Guide list factors: location of permanent home, location of family, location of personal belongings (cars, furniture, jewelry, art), location of social/political/cultural/religious affiliations, location of routine banking, location of business activities not constituting your tax home, jurisdiction issuing your driver’s license, jurisdiction where you vote, and the address shown on your tax forms. No single factor is decisive, but a few of them — family, permanent home, voter registration — carry outsized weight. If your family is in Brooklyn and you vote in Brooklyn, the rest of your file has to overcome that.

The IRS also looks at Form 8898. Anyone who becomes or ceases to be a bona fide resident of a US territory must file Form 8898 with their Form 1040 for the year of change. The penalty for not filing is $1,000, but the strategic damage is bigger: the absence of an 8898 is a primary exam-selection signal in the Puerto Rico Act 60 IRS compliance campaign. If you claim §933 exclusion in 2023 but never filed an 8898 in 2022 (your move year), the system flags it. The Wyden referral makes this flag matter more.

One more piece. The IRS has, under the LB&I Puerto Rico Act 22 campaign, a specific audit playbook. Examiners issue an Information Document Request (IDR) early that asks for boarding passes, lease documents, US and PR utility bills, dependents’ school records, voter registrations, and medical records. They cross-check that against CBP travel data, FBAR filings, Forms 1099 issued to your old US address, and Puerto Rico Departamento de Hacienda return data. The Puerto Rico Act 60 IRS posture you’ve documented on paper has to match the data trail in the federal databases. Where it doesn’t, the agency builds the residency disallowance from the mismatches.

What does this mean practically? Three things. First, if you don’t have a calendar-day log for every day of the last three years, build one — and build it from primary documents (boarding passes, hotel folios), not from memory. Second, file Form 8898 for every move year. Third, audit your closer-connection file the way an IRS examiner would: pull each factor, score yourself against it, and fix the weak ones. The Puerto Rico Act 60 IRS rules reward people who treat the move as a real move and punish people who treat it as a paperwork drill.

The final thing worth saying: bona fide residency is a year-by-year determination. You can be a bona fide resident in 2022, fail in 2023, and re-qualify in 2024. Each year stands on its own. That’s both a hazard and an opportunity. The hazard is that one bad year can blow up your §933 exclusion for that year and pull income that you treated as PR-source back into US gross income. The opportunity is that one bad year doesn’t necessarily contaminate the others, if you can document where the line falls. A serious Puerto Rico Act 60 IRS defense plays year-by-year.

One more thing about the §937 framework that’s easy to miss: the IRS isn’t just looking at where you slept. They’re looking at where your life moved. A Puerto Rico Act 60 IRS audit is built on patterns. Did your kids change schools? Did your spouse’s job follow? Did your accountant, your dentist, your barber, your therapist all stay in New York? Each piece of “no” hardens the inference that you didn’t really move — you just bought a beach apartment and started filing differently. The presence test is the floor. Pass the floor and you still have to win on substance. Fail the floor and the rest of the analysis doesn’t matter. We tell every NYC client weighing the move: write the year-one calendar before you sign the lease in San Juan, not after.

The short answer is: more than you think and in better order than you have it. The long answer is that a successful Puerto Rico Act 60 IRS audit defense is built on contemporaneous primary-source documents that establish, day by day, where you were, where your business was, and where your life was. The IRS doesn’t care about your retrospective story. It cares about the receipts.

Start with the day-count log. This is the single most important document in any Puerto Rico Act 60 IRS exam. You need a spreadsheet showing every day of the taxable year and where you were physically located: Puerto Rico, US, foreign, or in transit. Each day should be supported by a primary document — a boarding pass, a hotel folio, a credit-card transaction with geolocation, a ride-share receipt, an EZ-Pass record, a parking ticket, a doctor’s visit. Memory and calendar entries don’t count; the IRS will ask for the underlying documents. If you can’t produce primary support for at least 95% of the year, build the file by reconstruction from credit-card statements, airline accounts, and CBP I-94 records.

Next, your flight records. Pull every itinerary from American, JetBlue, Delta, United, and any private aviation service for the audit years. Cross-reference them against the day log. The IRS pulls CBP entry/exit data on most Puerto Rico Act 60 IRS exams, so the agency will have your flight history regardless. If your log says you were in San Juan on March 14 and CBP says you cleared MIA inbound from Madrid that day, the credibility of the entire log is damaged.

Then the residence file. Your Puerto Rico residence: deed if you bought, lease if you rented, recorded utility bills (LUMA Energy, AAA, internet, cable), homeowner’s insurance, condo association statements. Document the timing — when did you take possession, when did you close, when did the utilities go on. The Act 60 statute requires a real-property purchase within two years of the decree; the IRS uses that as a starting point but wants more. A real residence has the basic markers of being lived in. Photos of the inside (with metadata) are not unusual to produce.

Add the NY residence reconciliation. If you kept a New York apartment, lease, or co-op, you need a clear story for what happened to it. Did you sublet it? Convert it to investment? Use it only for a spouse and children? The Puerto Rico Act 60 IRS audit defense has to address it directly, not hide it. The closer-connection factor on permanent home is one of the strongest, and the IRS will find the property anyway through credit reports, public records, and 1099s.

Family location documents. School enrollment records for dependents, school tuition payments, school transportation, summer-camp enrollments, pediatrician records, dentist records. If your children attend a Puerto Rico school, that’s powerful. If they attend a Manhattan school, that’s a red flag the IRS will treat as outweighing many other factors. Your spouse’s tax filings matter too — if your spouse files a NY resident return while you file a PR bona fide resident return, the IRS notices.

Professional and licensing records. Where is your driver’s license issued? Where are your professional licenses (CPA, securities, medical, legal, real-estate brokerage)? Where do you bank, primarily? Where is your safe-deposit box? Where do you store collectibles? The closer-connection test on these factors is unforgiving. If you keep your NY driver’s license because “renewals are easier,” the IRS adds a point against you. Each minor factor, on its own, is small. In aggregate they decide cases.

Voter registration. This is small but important. Voting records are public. Registering to vote in Puerto Rico is one of the cleanest closer-connection facts you can establish. If you’re still registered in New York and you voted in the last election in New York, the IRS will note it. The Puerto Rico Act 60 IRS examiner has a checklist, and voter registration is on it.

Sourcing documents for income. For each material income item, you need the documentation that supports its sourcing. For wages: where the services were performed, day by day. For capital gains: acquisition records and the §1.937-1(g) analysis for any property held before the move. For interest and dividends: the issuer’s status (US versus PR). For business income: where the business operates and where it has substance. The Puerto Rico Act 60 IRS audit isn’t just about residency — half the adjustment in many cases comes from re-sourcing income that the taxpayer thought was PR-source.

Finally, your Act 60 compliance file: the decree itself, annual reports filed with DDEC, charitable contribution receipts ($10,000 minimum), filing fees, real-estate purchase documents (within 2 years of the decree), employment records for any local employees. The IRS reviews these to confirm you’re at least complying with the Commonwealth’s own rules. A taxpayer who hasn’t met the Puerto Rico Act 60 IRS analog — the underlying Act 60 conditions — is more likely to be treated skeptically on the federal residency analysis too.

The hard truth: most Puerto Rico Act 60 IRS audits aren’t lost on a single document. They’re lost on the cumulative weakness of the file. A good file is boring. It’s a binder of boarding passes, utility bills, and school records, indexed by date, with a one-page summary at the front. If you don’t have that binder, build it now. The clock starts the day a Revenue Agent calls.

One detail Reedcorp pushes harder than most CPA firms: build the binder contemporaneously, not retrospectively. A Puerto Rico Act 60 IRS audit usually opens 18 to 36 months after the year at issue, and a file built in panic the week the IDR arrives looks exactly like a file built in panic. The Revenue Agent has seen hundreds of those. A real-time file — boarding passes scanned the week of the flight, utility bills filed monthly, lease executed and saved on day one — looks like the file of a person who actually moved. Quietly, the year you build the better file is also the year you’ll be calmer about the move. Documentation isn’t just defense. It’s the discipline that makes the strategy real.

Maybe. The honest answer is: it depends on how you use it, who else uses it, and what the rest of your closer-connection file looks like. The Puerto Rico Act 60 IRS analysis doesn’t have a black-letter rule that says “no NYC apartment allowed.” But it has a closer-connection test, and a permanent home in Manhattan is a heavy weight on the New York side of the scale. You can carry that weight. You just have to know what’s on the other side.

Start with the legal framework. Under Reg. §1.937-1(c)(5), the closer-connection test looks at whether the individual has a stronger connection to Puerto Rico than to the US (or to any foreign country). It’s a totality-of-the-facts test. The regs reference §301.7701(b)-2(d) for the list of factors, which includes: location of permanent home, location of family, location of personal belongings, social/political/religious organizations, business activities (other than the tax home), jurisdiction of driver’s license, jurisdiction where you vote, address used on tax forms, types of forms filed. “Permanent home” is one factor of many — but it’s a heavy one.

What does “permanent home” mean? The regs define it as a dwelling that’s available to you on a more or less continuous basis. A hotel room you use occasionally isn’t a permanent home. An apartment you lease and pay rent on, even if you only use it 30 nights a year, is a permanent home. A pied-à-terre your spouse and children live in full time is your permanent home, even if your name isn’t on the lease. The Puerto Rico Act 60 IRS examiner will look for this and find it.

The “tax home” test interacts with this. Tax home is your principal place of business or, if you have no fixed business location, your regular abode. If your business is a Puerto Rico LLC with a real office in Hato Rey and real employees and you’re physically there 200+ days a year, your tax home is Puerto Rico — and the NY apartment is just a secondary residence. If your business is a remote consulting practice and your largest client is in NYC and you spend 95 days a year in your NY apartment working for them, your tax home is arguably New York. The Puerto Rico Act 60 IRS audit team uses tax-home failures more often than presence-test failures because tax home is fact-intensive and harder to fake.

So can you keep the apartment? Here are the patterns that survive a Puerto Rico Act 60 IRS audit:

• You sold or rented out your primary NYC residence and bought a smaller pied-à-terre that you use only when traveling for business or family. Your spouse and children moved with you to Puerto Rico. The pied-à-terre is documented as a secondary residence in your file.
• You converted your NYC apartment to an investment property, leased it to an unrelated tenant, and have a clean lease and rent history. You stay at hotels when you visit New York. The apartment isn’t “available” to you in the §301.7701(b)-2 sense.
• You kept a small studio for business travel only. Your spouse and children live in Puerto Rico. You spend fewer than 60 nights a year in the studio. Your office, your billing address, and your bank are all in San Juan.

And here are the patterns that don’t survive:

• Your family lives in NY full-time. You commute. The Puerto Rico Act 60 IRS analysis is essentially over — family location is one of the strongest closer-connection factors and the IRS will treat your situation as not having actually moved.
• You kept a 2,500-square-foot Tribeca loft, all your art, all your wine, your dog, and the rabbi who married you and your wife. You spend 184 days in PR. You’ll lose. The aggregate factor weight is overwhelming on the NY side.
• You sublet the apartment to a “friend” but you stay there whenever you visit, the doorman knows you, and your mail still goes there. The IRS will treat the apartment as available to you, which makes it a permanent home in NY.
• You rent month-to-month and the unit is technically your spouse’s, but you stay there 100 nights a year. The IRS examines actual use, not nominal title.

One more wrinkle: §937 lets you have permanent homes in two places, but you must have a closer connection to Puerto Rico than to the US. If you have a comparable home in each location, the tiebreakers run on family, business, social, and registration factors. The Puerto Rico Act 60 IRS rules let you keep an NYC apartment, but they don’t let you keep an NYC life.

New York throws an additional layer on this. The state has its own statutory residency rule: a person is a NY statutory resident if they maintain a permanent place of abode in NY and are present in NY for more than 183 days. Even if you win the federal Puerto Rico Act 60 IRS analysis, you can lose New York and owe NY tax on your worldwide income. We frequently see clients win one and lose the other. Coordinated planning between the federal §937 strategy and the NY domicile/statutory residency strategy is the only way to keep both intact.

The practical guidance we give to NYC clients with Puerto Rico Act 60 status: if you’re going to keep a New York apartment, make it as small and as documented-as-secondary as possible. Move your spouse and dependents. Move your driver’s license, your voter registration, your professional licenses, and your primary banking. Move your mail. Move your dog. The Puerto Rico Act 60 IRS audit defense is built on the cumulative pattern of facts, and every fact you can move to the PR column is a point in your favor.

The other piece of this nobody wants to hear: the Puerto Rico Act 60 IRS audit has a tendency to start with the apartment. Sourcing arguments, presence calendars, §937 sourcing of capital gains — all that comes after. The opening salvo is almost always “tell me about your New York apartment.” Auditors know that an NYC apartment with the lights on, the utilities active, the parking spot leased, and family using it casually is a tell. They open with it because it usually breaks the case. If your apartment situation can’t survive that first conversation, the rest of the file is going to feel like cleanup work. Treat the apartment question as the first audit question, not the last.

This is the question we get asked the most and the question most badly handled in the field. The short answer is: capital gains accrued before you became a bona fide resident of Puerto Rico are generally treated as US-source for 10 years, even if you sell after you’ve moved. The Puerto Rico Act 60 IRS rules do not let you escape US tax on built-in gains by simply changing zip codes. Most people who learn this learn it from an audit notice.

The legal hook is Reg. §1.937-1(g), often called the “10-year rule” or the “appreciation built up before becoming a bona fide resident” rule. It works like this. If you owned property before you became a bona fide resident of Puerto Rico, and you sell that property within 10 years of becoming a bona fide resident, the regulation generally treats the pre-residency portion of the gain as not Puerto Rico-source. That means it doesn’t qualify for the §933 exclusion or the Act 60 0% rate, and you pay regular US capital gains tax on it. The Puerto Rico Act 60 IRS audit team is trained to look at this issue specifically because so many relocators get it wrong.

There’s a relief valve. Under Reg. §1.937-1(g) you can make a special election to treat the property as if it had been sold and repurchased on the day you became a bona fide resident — the “mark-to-market” or “deemed sale” election. You recognize the built-in gain at move-in, pay US tax on it then, and any further appreciation accruing while you’re a bona fide resident gets the Puerto Rico Act 60 IRS treatment. For someone who relocates with a large unrealized position they expect to hold for many years, the election can be smart. For someone who plans to sell soon, the election is just acceleration with no benefit. The decision has to be modeled, not guessed at.

Most people don’t make this election. Most people don’t know it exists. They sell appreciated stock or crypto a year after moving and report 100% of the gain as Puerto Rico-source, claim the 0% rate, and assume they’re done. The Puerto Rico Act 60 IRS audit then re-sources the gain under §1.937-1(g), assesses the regular capital gains tax (15-20%, sometimes 23.8% with NIIT, plus state if NY hasn’t released them), and adds penalties.

Now layer on the export-services side. If you have an Act 60 export-services entity (the old Act 20 piece), the entity earns at a 4% Commonwealth rate on services exported off-island. That’s separate from your individual capital gains analysis. But people sometimes try to merge them: they contribute appreciated stock to their PR LLC and have the LLC sell it, hoping the gain becomes “PR-source business income.” That doesn’t work. §937(b)(2) and the anti-abuse rules in §1.937-2(f) specifically address this kind of structure. The Puerto Rico Act 60 IRS examiners know it cold.

What about crypto? Crypto is “personal property” under §1234A and §1221, so the gains are sourced under §865(a) — the residence-of-the-seller rule, modified by §865(g)(3) for bona fide residents of US possessions. Under §865(g)(3) and §1.937-2(f), gains from the sale of personal property by a bona fide resident of Puerto Rico are PR-source — but only if the property wasn’t held before the residency began, or if the §1.937-1(g) 10-year rule has run, or if the deemed-sale election was made. Bitcoin you bought in 2017 and sold in 2024 a year after moving to San Juan? Under the 10-year rule, the pre-2024 appreciation is treated as US-source. The Puerto Rico Act 60 IRS rules on this issue have been confirmed by the IRS in informal guidance and in the LB&I campaign materials.

What about partnership and S-corp interests? Same general framework. If you held a partnership interest before the move, the pre-residency appreciation portion of any gain on sale is generally non-PR-source for 10 years. There are special rules under §741 and §751 for hot assets that complicate this further. For an S-corp shareholder, the entity’s character flows through, so the analysis applies item by item to the S-corp’s underlying assets at the time you became a resident.

What about real estate? Real estate sourcing is different. §865(d)(1) and §1.937-2(d)(3) source real estate gains by location of the property. NY real estate sold by a PR resident is still NY-source — and US-source for federal purposes — regardless of the Puerto Rico Act 60 IRS treatment. The 10-year rule is essentially irrelevant for real estate; the location of the dirt controls.

How do we handle this for clients? We model both paths at the time of relocation. Path one: skip the deemed-sale election, hold the position for 10+ years to fully exit the §1.937-1(g) trap, and any sale before then accepts the pre-move portion as US-source. Path two: make the deemed-sale election, accelerate the US tax on the built-in gain at move-in, and treat all post-move appreciation as PR-source. The right answer depends on the size of the gain, the holding period horizon, the basis, the taxpayer’s marginal rate, the state-tax interaction, and whether any portion is qualified small business stock or otherwise has its own preferential treatment. The Puerto Rico Act 60 IRS rules don’t favor one path universally — they require analysis.

If you’ve already moved and already sold, and the prior preparer treated 100% of the gain as PR-source, that’s a known audit risk. The Puerto Rico Act 60 IRS LB&I campaign actively pulls returns with this fact pattern. The fix-it options are: amend the return, file a qualified amended return, or initiate a voluntary disclosure if criminal exposure is in play. Doing it before the IRS opens the file is materially cheaper than doing it after.

The closer-look question we get most often on §937(b)(2) and Treas. Reg. §1.937-1(g): can a Puerto Rico Act 60 IRS election change the result for stock acquired before the move? The short answer is no — the rule is mechanical. The longer answer is that smart timing of post-move dispositions, combined with §1296 mark-to-market elections for certain holdings and §1014 basis step-up considerations on inherited property, can dramatically change the after-tax outcome over a ten-year horizon. None of that is intuitive, and none of it is in the pamphlet a relocation consultant will give you. Plan it before the move. Replanning it after the IRS opens the file rarely ends well.

First, don’t panic. Second, don’t call the agent back without representation. Third, don’t try to fix anything in your records before counsel sees them. The way you respond to a Puerto Rico Act 60 IRS contact in the first 30 days largely determines whether you settle the file in 18 months or fight it in Tax Court for five years.

Step one: engage counsel and a tax pro the same day. The Puerto Rico Act 60 IRS exposure is a hybrid civil-criminal risk. If the file came in via a Senate referral and the underlying conduct involves false residency claims, the IRS may treat the matter as an eggshell audit — a civil exam where the agent is alert to fraud indicators and may refer to Criminal Investigation if they find them. You want a tax controversy attorney involved before the first IDR response, both for privilege protection (a Kovel arrangement preserves attorney-client privilege over your CPA’s work) and for strategy. Reedcorp does the technical accounting work; we routinely partner with criminal-defense and tax-controversy lawyers on cases like this.

Step two: preserve everything. The moment you receive a Puerto Rico Act 60 IRS contact letter, you have an affirmative obligation not to destroy or alter records — and even routine deletion of emails or texts can be argued as obstruction. Tell your IT person to suspend any auto-delete policies on your email, your messaging apps, and your cloud storage. Pull all of your boarding passes, hotel folios, credit-card statements, bank statements, and ride-share histories for the audit years and the years on either side. The discovery period in a typical Puerto Rico Act 60 IRS audit is three years but extends to six years for substantial omissions and indefinitely for fraud. Plan for six years of documents.

Step three: freeze new transactions that would look bad. This includes large stock sales, crypto sales, real-estate transactions, and large transfers between US and PR accounts. The Puerto Rico Act 60 IRS audit team will look at your post-contact behavior. If you sell appreciated stock the week after the contact letter and treat it as PR-source, that’s exactly the fact pattern that prompts a fraud referral. Slow down.

Step four: build the day-by-day log. We covered this in Q2 — boarding passes, hotel folios, credit-card geolocations, ride-share, EZ-Pass. Every audit year. Reconcile to CBP I-94 records (you can request these from CBP for free) and to your cell-phone carrier records (these can be subpoenaed; better to know what they show now). The Puerto Rico Act 60 IRS examiner will use the same data sources you should.

Step five: analyze your closer-connection facts honestly. List every closer-connection factor (driver’s license, voter registration, family location, personal belongings, social/religious organizations, banking, business activities other than tax home, address on tax forms). Score each one. Where does each factor point — Puerto Rico, NY, somewhere else? If the score comes out 4-PR, 8-NY, you have a problem. Knowing it now is better than learning it from the agent.

Step six: re-source your income year by year. Wages, capital gains, dividends, interest, partnership income, S-corp K-1, crypto. For each material item, run the §937 sourcing rule and document the conclusion. Where the prior preparer applied PR-source treatment that you can’t defend, flag it. The Puerto Rico Act 60 IRS audit will do this anyway; you want to know your real exposure before they tell you.

Step seven: make a disclosure decision. If your re-analysis shows material understatement, talk to controversy counsel about whether to make a qualified amended return (Reg. §1.6664-2(c)(3)), a voluntary disclosure under the IRS’s Voluntary Disclosure Practice, or to ride the audit. Each option has tradeoffs. A qualified amended return submitted before exam contact can eliminate the accuracy-related penalty (20% of the understatement). A voluntary disclosure provides protection against criminal referral but generally requires payment of tax, interest, and a civil fraud penalty (75% of the understatement) on the largest year. Riding the audit means accepting whatever penalties the agent proposes. The right answer depends on the size of the exposure, the strength of the documentation, and whether criminal indicators are present.

Step eight: work with the auditor, not against them. Once your strategy is set, respond to IDRs on time, produce documents in an organized way, and answer questions through counsel. Antagonizing the agent doesn’t help. Most Puerto Rico Act 60 IRS audits settle at the exam level or at Appeals. Tax Court is the third option, not the first. Examiners have discretion on penalty assertion and on whether to refer for criminal review. They use that discretion based partly on the taxpayer’s posture during the exam.

Step nine: plan for the New York front. As soon as your federal Puerto Rico Act 60 IRS exam opens, NY may open a parallel residency audit. New York’s statutory residency rule (permanent abode + 183 days) and domicile rules apply independently. Coordinated representation across federal and NY is essential — answers given to one can be used against you in the other.

Step ten: fix forward. Whatever the audit outcome, the years going forward need to be defensible. If the audit reveals that your day-count log is weak, build a real one. If the closer-connection file is light, fix it. The Wyden referral isn’t a one-time event; it’s the front edge of a multi-year enforcement push. The Puerto Rico Act 60 IRS audit you face this year is one input the IRS will use when deciding whether to come back next year. The taxpayers who clean up after the first contact are usually left alone after that. The ones who don’t get audited again.

Last piece of advice: don’t talk about the audit publicly, on social media, or to anyone outside your representation team. Investigators read posts. Fellow Act 60 relocators talk. The Puerto Rico Act 60 IRS investigation has a small-world quality, and what you tell one person in Dorado at brunch can land in another taxpayer’s IDR response a year later. Quiet is the right posture.