Deadline Puerto Rico, Virgin Islands, American Samoa | KPMG | GLOBAL
close
Share with your friends

June 29 deadline for Puerto Rico, Virgin Islands, American Samoa

Deadline Puerto Rico, Virgin Islands, American Samoa

The IRS today issued a release as a reminder to residents of Puerto Rico, the U.S. Virgin Islands, and American Samoa and who were affected by last year’s hurricanes and tropical storms of the requirements to file a 2017 federal income tax return or pay their 2017 tax by a special extended deadline of June 29, 2018.

1000

Related content

The IRS release—IR-2018-142—notes that the special extended deadline is available whether or not a taxpayer’s residence changed during 2017. No interest, late-filing penalty or late-payment penalty will be due.

Form 8898

The IRS also noted that certain residents of Puerto Rico, the U.S. Virgin Islands, and American Samoa who permanently relocated to the U.S. mainland due to last year’s hurricanes and tropical storms may need to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession, along with Form 1040 or Form 1040NR. Because of disaster-related extensions granted by the IRS to residents of these three U.S. territories, Form 8898 generally is due June 29, 2018. 

  • The Form 8898 filing requirement applies to individuals who had total gross income exceeding $75,000 for the year; ceased to be, or became, a bona fide resident of a U.S. territory during 2017; and met other requirements. The term “U.S. territories” includes Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands, 
  • Any individual taxpayer who files for an income-tax-filing extension will also have until October 15, 2018, to file Form 8898.
  • The requirement to file Form 8898 for married couples applies to each spouse separately. 

 

Generally, a taxpayer is a bona fide resident of a U.S. territory if the taxpayer:

  • Satisfies the “presence test”—i.e., spent at least 183 days in the territory
  • Does not have a tax home outside the U.S territory, and 
  • Does not have a closer connection to the United States or to a foreign country than to the U.S. territory

The IRS explained that generally, this means that a person who lives and works in a U.S. territory and spends most of his or her time there, is considered a bona fide resident of that territory. Special residency rules apply for active duty military members of the U.S. Armed Forces and their civilian spouses.

Residents of Puerto Rico and the U.S. Virgin Islands who temporarily left due to Hurricane Irma or Hurricane Maria but have already returned to the territory (or plan to return) generally will not need to file Form 8898 because under the special relief, none of the time between September 6, 2017, and May 31, 2018, is considered to be time away from the territory. Read Notice 2018-19 [PDF 11 KB] that extended relief for a period of 268 days—effective beginning September 6, 2017, and ending May 31, 2018—and TaxNewsFlash.

<p>© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.</p>

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit