We have all had those doubts at the time of filing our tax return, doubts such as: What happens if I don't file my return, can I ask for an extension, or can I pay the tax in installments? For this reason, we have decided to clarify some of the most common doubts so that you can fill out and file your tax return in an easy, fast, and safe way.
Most common doubts:
1. What happens if I don't file a return?
- Every taxpayer, individual or married, resident of Puerto Rico, who has earned income net of exemptions greater than 0 during the tax year must file a return.
- If the taxpayer does not file a return, he/she is exposed to penalties, interest, and surcharges, as well as civil and criminal sanctions. Since it is an obligation by law to file your return.
- The Code imposes a progressive penalty from 5% to 25% of the total amount of the Contribution, when the return is not filed on time with valid justification.
- Payment of interest: If the taxpayer does not pay his tax return by the due date, he will have to pay 10% annual interest on the tax balance due at the due date.
- Additional Surcharge: If you do not pay within 30 days, you will be charged an additional 5% of the amount due.
- When interest is payable, an additional surcharge of 5% of the total unpaid amount will be charged if payment is overdue for more than 30 days, but not more than 60 days; or 10% of the total unpaid amount if payment is overdue for more than 60 days.
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2. Can I ask for an extension?
- If you don't have the documents you need to file your returns on or before the April 18 deadline, you can ask for an automatic six-month extension. That way, you avoid penalties for not filing on time.
- In the event an extension of time is requested on or before the due date for filing the Income Tax Return, a six (6) month extension of time to file said return will be granted. However, this extension does not extend the payment of the tax or any deadline thereof.
- There is an additional extension for any individual, estate or trust that filed a request for an automatic extension of time to file its Income Tax Return and that, because it is outside of Puerto Rico, needs additional time to file its Income Tax Return. Such additional extension shall not exceed 6 months. This extension does not apply to individuals, estates or trusts that are partners in a partnership subject to taxation under the Federal Internal Revenue Code. It also does not apply to grantor trusts. The taxpayer must indicate if he/she is outside of Puerto Rico and must attach evidence with the request for an additional extension.
- The request for an additional extension must be filed no later than the extended filing date. That is, April 18, 2022, if you determine your income on a calendar year basis, or the fifteenth day of the seventh month following the close of the year, if you file on a fiscal year basis.
- To request an extension, you must complete Form SC 2644, which you can request from SURI.
3. Is it possible to pay the contribution in installments?
- Employees are entitled to pay the tax they owe in installments. By sending half or more with the return or extension, and the remainder on or before the deadline agreed upon and approved with the Collection District of the area to which the taxpayer belongs.
- All taxpayers that avail themselves of a payment plan, whether short-term or regular term, shall promptly pay any tax bill imposed after the formalization of such payment plan, in addition to the payments corresponding to the payment plan, within the due period of each notified bill or term of the payment plan. Offers and Payment Commitments.
- Payment plans may be formalized at the Collection Districts or by telephone by calling Hacienda Responde. The payment plan will be approved by the supervisor of the Collection District of the area to which the taxpayer belongs.
4. Can I include my college child on the return?
- The general rule is that the dependent cannot earn more than $2,500 per year. However, there is an exception for full-time college students up to age 26. They can earn up to $7,500 on a part-time basis, and their parents can still take them in as dependents.
If you have tax questions, it is recommended that you visit or call a tax advisor, a tax preparer, or the Department of Revenue.