Treasury starts recovery of $9M in unpaid tax debts
The Puerto Rico Treasury Department has begun the administrative process to recover more than $9 million in unpaid taxes linked to defendants accused in a fraud scheme uncovered through a joint investigation with federal authorities.
Treasury Secretary Ángel L. Pantoja-Rodríguez said the agency’s Internal Revenue Area has already started assessing and collecting the debts, which total about $9.3 million and include income tax, employer withholdings, and sales and use tax.
“As part of the actions the Department is taking in response to this case, the Internal Revenue Area has begun the process of assessing and collecting the taxes these individuals evaded,” he said.
Pantoja-Rodríguez added that the agency also identified “other violations, such as unreported income and failure to file tax returns.”
The administrative process includes issuing notifications to those involved and appraising debts to determine each taxpayer’s liability, he said. To secure potential recovery, the Department initiated an at-risk tax assessment intended to prevent notified taxpayers from disposing of assets.
“However, I reiterate that every taxpayer is protected by certain rights, according to the Taxpayer Bill of Rights, and is guaranteed due process of law,” he said.
Defendants may request reconsideration and an administrative hearing on the debts and may halt collection efforts by posting a bond, in accordance with the Puerto Rico Internal Revenue Code.
Pantoja-Rodríguez also pointed to related enforcement steps. On Nov. 14, Treasury suspended alcoholic beverage licenses for establishments tied to Criminal Indictment No. 25-434, which includes 138 charges against 26 individuals and corporations for conspiracy to commit wire fraud, bribery and defrauding the agency of more than $3.5 million.
