Consider Puerto Rico’s Tax Refund Process Before Taking Advantage of Its Property Tax Amnesty Program

Puerto Rico’s Property Tax Amnesty Program (“Program”), which began in July and will end October 11, 2011, allows qualifying taxpayers to receive a waiver of property tax penalty and interest. In addition, qualifying taxpayers may be allowed to deduct 50% of the principal amount due on personal property for 2000 and before.

The Program allows the Municipal Revenue Collection Center (“CRIM”) to waive penalty and interest on real property taxes due for tax years 2009 through 2010 and before, and to waive penalty and interest on personal property tax due for tax years 2008 and before.

To apply for the Program, a taxpayer must complete Form BC-72 for real property and BC-73 for personal property. The completed forms must be sworn before an authorized representative of Puerto Rico’s CRIM and must certify the taxpayer’s mailing address. In addition, the taxpayer must have paid all real property taxes due for tax year 2010-2011 and the taxes due for first quarter of the 2011-2012 tax year. Further, the taxpayer must pay all personal property taxes for tax years 2009 and 2010. The total principal amount of the tax must be paid by certified check, manager’s check, money order, credit or debit card, or cash.

Any amounts paid under the Program cannot be challenged, and Ryan urges taxpayers to consult with a tax professional before participating in the Program.