IRS Policing of Puerto Rico Perk for Rich Eyed by Senate (1)

The Senate Finance Committee is taking a closer look into whether the IRS fell short in policing a tax break offered by Puerto Rico to woo wealthy people to the island with the promise of allowing them to pay minimal federal income tax or none at all.

The probe adds to lawmaker pressure on the agency concerning the perk, known as Act 22, that eliminates taxes on dividends, interest, and capital gains, and allows individuals to pay just 4% in income tax for those who move to the island. The government currently has 2,670 active Act 22 agreements, according to ...