IRS: ADDITIONAL RELIEF FOR BONA FIDE RESIDENTS OF PUERTO RICO AND THE U.S. VIRGIN ISLANDS

March 7, 2018

On February 27, 2018, the U.S. Internal Revenue Service published IRS Notice 2018-19 which extends relief provided under IRS Notice 2017-56 to residents of Puerto Rico and the U.S. Virgin Islands. In the wake of Hurricane Irma and Hurricane Maria, the IRS issued Notice 2017-56 to allow "bona fide residents" of Puerto Rico or the U.S. Virgin Islands to maintain their status for tax filing and reporting purposes in the event they had evacuated or could not return due to the resulting aftermath. Generally, the IRS provides for a 14 day absence period for the residence presence test; Notice 2018-19 extends this term to 268 days. This extended term is counted beginning on September 6, 2017 through May 31, 2018. Individuals absent from Puerto Rico or the U.S. Virgin Islands on any day during the 268 day period will also be considered on such day as leaving or unable to return to the applicable U.S. Territory as a result of Hurricane Irma and Hurricane Maria. This measure should provide additional respite to individuals in Puerto Rico that have "bone fide resident" status for tax purposes that have not yet been able to return to their respective residences or livelihoods.

Goldman Antonetti & Córdova, LLC stands ready to assist you and your business to adjust to changes in the law. If you need further assistance in this area, please feel free to contact the following members of our Tax Department:

Rebecca Cuevas-Fontán, Esq., CPA
787.759.4153
[email protected]

Fernando J. Bruno Ramírez de Arellano, Esq.
787.759.4125
[email protected]

Roberto Montalvo-Carbia, Esq.
787.759.4123
[email protected]

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IRS Circular 230 Disclosure:

To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code; or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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