* Certain requirements and conditions apply. Please see below for more information. ** Portal was supposed to be available as of June 1, 2018; however, it is not operational yet. We understand it shall be available in the next following days.   Background The Disaster Tax Relief and Airport and Airway Extension Act of 2017 was signed by President Trump on September 29, 2017 (hereinafter “Act”) to provide targeted tax relief for taxpayers impacted by Hurricanes Harvey, Irma, and María. Among the reliefs provided by the Act, there is a tax credit of the applicable percentage of 40% of the qualified wages paid by disaster-affected employers to each employee from a core disaster area. The credit was made extensive to businesses that are operating...

The Treasury Department (the “Department”) issued Administrative Determination No. 18-07 (the “Determination”). The Determination basically discusses two items. First, it extends the automatic extension terms from three to six months. Second, it provides some guidelines to request the waiver of additions to the tax for late payment of estimated income tax. A more detailed discussion follows.   Extended Period for the Automatic Extension As a general rule, an automatic extension provides for an additional period of time of three months to file the corresponding tax return and does not allow for additional time to pay. It’s called an automatic extension because the taxpayer does not need to provide a reason for it. However, note that it has to be timely filed. After the approval...

Treasury issued Administrative Determination 18-05 (“Determination”), which provides how individuals will claim any losses suffered as consequence of Hurricane María. The determination is aimed at individual losses not related to a trade or business. In the case of individuals the Puerto Rico Internal Revenue Code of 2011, as amended (“Code”), provides two deductions: Losses suffered in the principal residence of the taxpayer Losses suffered related to personal property and due to a casualty in an area designated as a disaster zone by the Governor. Such losses shall be limited to $5,000 per year and can be carried forward for the next two years. In both cases, the amount of the deductible loss shall be reduced by any insurance payment received. The issues...