In this issue: We list the exceptions for which certain taxpayers must file their tax return on paper.  In addition, we describe the process for filing these returns.  We also summarize the actions to take for pending tax debt balances, payments made in excess, requests for an extension to file, and making amendments to filed tax returns.

As always, we remind you to contact us at Torres CPA Group to discuss your individual case.

Changes in Filing the 2018 Income Tax Return


On Internal Revenue Circular Letter 19-04 (CC RI 19-04), the Treasury Department (TD) establishes that all Income Tax Returns must be filed electronically.  CC RI 19-04 emphasizes that the TD will not accept any Tax Return filed on paper that does not comply with the criteria it lists below.  Any tax Return filed on paper must be filled out using the binder on Form 482 titled “Requires Form 483.2”.  Form 483.2 must be filled out and signed.

For the 2018 tax year, the TD has stipulated the following exceptions to the Electronic filing of the Individual Tax Return:


1.     Partners or shareholders of a Flow-through Entity whose tax year did not end on December 31, 2018.

2.     Non-resident individual that sells a real estate property in Puerto Rico.

3.     Deduction for Investment under Law 185-2014, as amended.

4.     Income from pensions—Form 1099-R.

5.     Exempt Income from the creation of Young Businesses under Law 135-2014.

6.     Any taxpayer that claims the following tax credits:


  • Attributable credit for losses or investments on the Investment Capital Fund.
  • Credit for investing in building in urban centers.
  • Credit for merchants affected by the revitalization of urban centers.
  • Credit for the eligible conservation easement or donation of eligible land.
  • Credit for investing in Tourism Development under Law 78-1993 or Agriculture Development under Law 225-1995.
  • Credit for investing in the development of the film industry engaged in a film or infrastructure project.
  • Credit for buying or airing television programming produced in Puerto Rico.
  • Credit for donations to foundations of ex-governors.
  • Credit for certified membership payments from ordinary or extraordinary members of a Special Corporation owned by workers.
  • Credit for investors that acquire an exempt business that is about to close operations in Puerto Rico.
  • Credit for industrial investment known as the Economic Incentives Law for the Development of Puerto Rico.
  • Credit for investing in research and development of green energy projects known as the Green Energy Incentives Law of Puerto Rico.
  • Credit for investing in housing infrastructure.
  • Credit for investing in the construction or rehabilitation of homes to be rented to low or medium-income families.
  • Credit for buying tax credits.
  • Previously mentioned credits that have been dragged from previous years; and
  • Any other non-refundable tax credit that has not been previously included.


7.      Jobs Now Law.

8.     Compensation for Military Service.

9.     Additional Contributions to Pension Plans or to Government Retirement Plans.

10. Excess in the calculation for Taxes paid late (Model SC 2668).

11. Individuals required to submit audited financial statements.

12.  Non-resident Foreigners with earnings related to any industry or business in Puerto Rico.

13. Any individual not able to submit electronically the tax return or automatic extension due to an error in the Social Security number that is filing for the first time or due to an error in the System.

14. Credit for taxes paid outside Puerto Rico.

15. Any taxpayer that passed away during the tax year or surviving spouse that files another tax return for the same tax year.


Changes in the Individual Tax Return 2018


For the year 2018 the only changes in the individual tax return are the following:

  1. The claim of the American Opportunity Credit is eliminated. The period for this benefit was from 2013 to 2017.
  2. Income Exempt for compensation paid to an employee due to dismissal now will not be subject to alternate basic tax.


Filing the Tax Return on Paper:


The Tax Return must be duly filled out; it must include Form 483.2 and the required evidence.  They must be filed as follow:


In Person:   

1.) At the Treasury Department, 10 Paseo Covadonga, Intendente Ramírez Building, Old San Juan.

2.) At any Internal Revenue Collection Center located throughout the Island.

3.) At any Center for the Orientation and Preparation of Tax Returns.


The TD will be publishing a list of the location and working hours of these centers.


By Mail: Departamento de Hacienda, P.O. Box 9022501, San Juan, PR 00902-2501.


Balance of Pending Taxes or Taxes Payed in Excess


If during the process of electronic filing of the Individual Tax Return, the system shows any balance pending to be paid, the taxpayer may make the payment at the moment using a checking or savings account; or may authorize subsequent payments to be debited to any banking account that has sufficient funds no later than April 15, 2019.


On the other hand, if the Tax Return filed electronically shows any taxes paid in excess, the taxpayer may request the refund to be deposited automatically to his checking or savings account.


Automatic Extension (Model SC 2644)


Taxpayers not able to file their Individual Tax Return for the tax year 2018 on April 15, 2019, may request an automatic extension.  It may be requested by completing Form Model SC 2644 (“Request for Extension”).  This request must be filed electronically.


Taxpayer’s Email Address


All taxpayers must include their email addresses and make sure the account is active.  This will be the address the TD will be registering on its records and using to contact the taxpayer.

Amended Tax Returns


Any amendments to be made to electronically-filed Tax Returns must also be made electronically.  However, if the Original Tax Return was filed on paper, the amended Tax Return must also be filed on paper using Form 483.2.  The taxpayer must make sure to check the same reason for filing on paper used on the Original Tax Return.


On the other hand, if the Original Tax Return was filed electronically but the Amended Tax Return qualifies under any of the Exceptions for Electronic Filing, the amended Tax Return must be filed on paper and include Form 483.2.


The electronic filing of all Amended Tax Returns entails the cost established by the provider of the program certified by the TD.

At TCG we have the resources and experience to help you, contact us today.


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