Act 60

GAO Report Signals Intensified IRS Scrutiny of Act 60 Residents

A U.S. Government Accountability Office (GAO) report has signaled intensified federal scrutiny of individuals claiming Puerto Rico residency under Act 60. The GAO found that 381 individuals who claimed Act 60’s resident-investor incentive in 2021 had relocated from California — the largest state cohort — making them a likely focus of both the IRS and the California Franchise Tax Board. The findings point to closer examination of whether beneficiaries genuinely meet the residency and presence requirements that Act 60 demands, and add to a broader wave of enforcement attention on the program.