The IRS investigates around a 100 Act 60 (22) decree holders
On July 14th, the IRS released its newsletter IR-2023-126 and revealed that “thanks to Inflation Reduction Act resources,” it has begun a criminal crackdown on Act 20/22/60 participants engaging in a ”high-dollar scheme in Puerto Rico.” The IRS has “identified about 100 high-income individuals claiming benefits in Puerto Rico without meeting the residence and source rules involving U.S. possessions” and believes “these wealthy individuals are attempting to avoid U.S. taxation on U.S. source income, and we expect many of these cases to proceed to criminal investigation.”
Puerto Rico’s Act 20 and Act 22 provide generous tax incentives to U.S. companies and individuals who establish bona fide residency in Puerto Rico. Under U.S. law, a bona fide resident of Puerto Rico is not subject to U.S. income taxes on income derived from sources within Puerto Rico. Bona fide residents of Puerto Rico are only subject to U.S. income taxes on income outside of Puerto Rico.
Furthermore, the Puerto Rico government has announced that they are cooperating with the federal investigation to crack down on tax evasion of specific individuals.
https://www.elnuevodia.com/english/news/story/the-government-cooperates-with-the-irs-investigation/