Deadline To Report Qualified Payments For Disaster Assistance With The Puerto Rico Department Of The Treasury Is Soon Approaching

Author:Ms Ana María Bigas-Kennerley
Profession:Littler Mendelson

On October 4, 2017, the Puerto Rico Department of the Treasury (the "PR Treasury") issued Administrative Determination No. 17-21 (AD 17-21) to exclude from gross income certain payments employers made to employees for disaster assistance related to Hurricane María. These payments to repair or compensate hurricane-caused damages or losses were considered "Qualified Payments."  Pursuant to AD 17-21, every employer that made Qualified Payments must submit to the PR Treasury, no later than January 31, 2018, a sworn statement including the following information:

the name and Social Security number of each employee (and/or independent contractor) to whom a Qualified Payment was made; and the amount paid during the period from September 21, 2017 through December 31, 2018. The PR Treasury indicated in AD 17-21 that subsequent guidance was to be issued indicating how the sworn statement should be submitted.  To that end, on January 18, 2018, the PR Treasury issued Internal Revenue Informative Bulletin No. 18-03 ("IR IB 18-03"), notifying employers that the sworn statement to report Qualified Payments must be submitted with the PR Treasury no later than January 31...

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