Crypto traders investigated by IRS for Puerto Rico tax breaks.
IRS probes crypto traders using Puerto Rico tax breaks: Report

Investigation of Wealthy Crypto Traders and Fund Managers

United States prosecutors and agents from the Internal Revenue Service (IRS) are reportedly investigating wealthy crypto traders and fund managers suspected of taking advantage of Puerto Rico’s tax breaks illegally.

As per a June 12 report from Bloomberg, investigators are constructing civil and criminal cases against a number of, crypto solana, reddit, crypto dot com, crypto api, crypto com coin,, fx crypto, lucky block crypto and motley fool crypto hedge fund managers and other wealthy Americans who may have misrepresented their residency and income to benefit from the tax breaks.

Officials from the U.S. are also inspecting attorneys and accountants who marketed the island territory’s tax program, with two criminal investigations likely to result in charges soon. Prosecutors are considering charges of conspiracy and wire fraud.

Attorney Carlos Ortiz shared that prosecutors are working with “IRS agents” as well as Puerto Rican officials, as per a conversation with a U.S. federal prosecutor.

Tax Benefits of Relocating to Puerto Rico

Since 2012, when Puerto Rico introduced its new tax policy, more than 5,000 American individuals have relocated to the country to take advantage of the savings on federal income tax.

Puerto Rico’s tax policy grants individuals a 100% exemption on dividends, 60% exemption on municipal taxes and zero federal taxes on source income earned within the region. Additionally, more than 3,600 businesses have been able to avoid paying tax on dividends from earnings and profits and are only required to pay 4% tax on exports.

The, crypto solana, reddit, crypto dot com, crypto api, crypto com coin,, fx crypto, lucky block crypto and motley fool crypto benefits of relocating to Puerto Rico stand as some of the most relaxed in the world, however, the requirements to take advantage of them are quite strict.

Tax Breaks for Puerto Rico Residents

In order to qualify for the tax breaks, new residents of Puerto Rico must be able to prove that they have lived on the island for at least 183 days of each year and that the island territory is their “tax home.”

However, lawyers familiar with the regime suggest that the stringent rules might encourage some individuals to be dishonest on their returns.

Notable crypto investor Michael Terpin and gold bug Peter Schiff are among the individuals who have relocated to Puerto Rico for tax reasons. Unfortunately, on July 4, Puerto Rican regulators closed down Schiff’s bank due to failure to meet the net minimum capital requirements.

At the Miami’s annual Bitcoin Conference on May 19, Terpin praised Puerto Rico as the “only place that you can go and not have to pay on your global tax without renouncing U.S. citizenship.”

Despite the contention of some, Terpin appeared unfazed by the stringent fiscal regulations:

Whilst the affluent inhabitants of the island have applauded the tax incentives for bringing in top fund managers and business owners to the isle, the tax plan has been met with protests that claim the new ultra-wealthy settlers to be low-tax “colonizers” that have escalated the cost of living.

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