For high net worth individuals with a flexible work/life schedule, relocating to Puerto Rico could provide a potential opportunity to reduce federal and state taxes without having to give up U.S. citizenship. While the potential tax savings (and the local beaches) may be attractive, IRS has come under pressure to crack down on individuals who are claiming U.S. tax benefits but not adhering to all the requirements. Any individuals considering a move to Puerto Rico, as well as those who have already relocated, should make sure that they have qualified for the U.S. tax benefits and are also properly reporting them.

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