Puerto Rico extends deadline for filing informative returns (the equivalent to 1099)

Employers, Withholding Agents and Payroll Specialists

BI Newsletter of RI Num. 18-08 01/03/2018 Internal Revenue

Sections 1063.01, 1063.03, 1063.05, 1063.06 and 1063.10 of the Internal Revenue Code of Puerto Rico of 2011, as amended ("Code"), provide that all persons engaged in industry or business in Puerto Rico who make payments for income , compensations, benefits, interests, dividends, services rendered, or judicial compensation, among others, must submit to the Department of the Treasury ("Department"), an informative declaration and a state of annual reconciliation of income subject to withholding no later than February 28 of the following year. These must include the amount of said earnings, benefits and income and the name, address and account number of the recipient of such payments. The Code also provides that when the date of filing is a Saturday, Sunday or holiday,

Based on the foregoing, the expiration date of the following informative statements for the year 2017 was last Wednesday, February 28, 2018:

• Form 480.6A "Informative Return - Income Not Subject to Withholding"
• Form 480.6B "Informative Return - Income Subject to Withholding"
• Form 480.6D "Informative Return - Exempt and Excluded Income and Exempt Income Subject to Alternate Basic Contribution"
• Form 480.6B.1 "State of Annual Reconciliation of Income Subject to Withholding"
• Form 480.5 "Summary of Informative Returns"
• Form 480.7 "Informative Return - Individual Retirement Account"
• Form 480.7B "Informative Return - Educational Contribution Account"
• Form 480.7C "Informative Return - Retirement Plans and Annuities"

As established in Section 1063.09 of the Code and in Internal Revenue Circular Letter No. 13-19, the filing of these informative declarations may only be made by electronic transfer.

During the past Wednesday, February 28, 2018, the Department received several inquiries from withholding agents and payroll specialists, in which they expressed their concern at not having been able to comply with their responsibility in time, since they faced technical difficulties to the time to make the electronic filing.

In response to these concerns, the Department issues this Informative Bulletin with the purpose of extending the date of filing, until Tuesday, March 6, 2018, to render the Informative Declarations corresponding to the year 2017.

This extension of additional time covers only the informative statements indicated in this Newsletter.

The provisions of this Informative Bulletin have immediate effect.

For additional information related to the provisions of this Newsletter, you can send an email to: infosac@hacienda.pr.gov

Cordially,

Francisco Parés Alicea
Assistant Secretary
Internal Revenue Area