The IRS is investigating cryptocurrency traders using tax incentives in Puerto Rico

ChainCatcher News, IRS agents are investigating wealthy cryptocurrency traders and fund managers suspected of illegally benefiting from Puerto Rico's tax incentives. Investigators are currently pursuing civil and criminal cases against several hedge fund managers, cryptocurrency traders, and other wealthy Americans who may have misreported their residency status and income to unfairly take advantage of tax breaks.

It is reported that since Puerto Rico introduced its new tax policy in 2012, over 5,000 Americans have moved to the territory to save on federal income taxes. Puerto Rico's tax policy offers individuals 100% tax exemption on dividends and 60% exemption on municipal taxes, while the territory has zero federal tax on source income. To qualify for the tax breaks, new residents must be able to prove that they reside on the island for at least 183 days each year. (Source link)