Puerto Rico Updates Publication 17-06, Releases Electronic Specifications for Forms 480.7 and 480.7C

Puerto Rico has updated Publication 17-06. Publication 17-06 contains the electronic specifications for the 480 series of forms. With this update, Puerto Rico has included the specifications for Forms 480.7 and 480.7C, which were previously omitted due to the number of changes made to those forms.

 

The following is a non-exhaustive list of changes made to Publication 17-06:

 

New Fields

  • Form 480.7
    • The “Income Tax Withheld at Source on Eligible Distributions for Reason of Extreme Economic Emergency Due to Hurricane María” field (location 832-843) was added.
    • The “Taxable Amount” field (location 844-855) was added.
    • The “Exempt Amount” field (location 856-867) was added. The “Exempt Amount” cannot exceed $10,000.
    • The “Exempt Interest and Amount over which a Prepayment was Made” field (location 868-879) was added.
    • The “Eligible Distributions for Reason of Extreme Economic Emergency Due to Hurricane María Total” field (location 880-891) was added.
  • Form 480.7C
    • The “Fixed Annuity” box and the “Variable Annuity” box on “Plan or Annuity Type” field (location 322-322) were added.
    • Regarding the “Eligible Distributions for Reason of Extreme Economic Emergency Due to Hurricane María” fields:
    • The “Exempt” field (location 945-956) was added. The “Exempt” amount cannot exceed $10,000.
    • The “Taxable” field (location 957-968) was added.
    • The “Amount over which a Prepayment was Made” field (location 969- 980) was added.
    • The “After-Tax Contributions” field (location 981-992) was added.
    • The “Total” field (location 993-1004) was added. 
  • The “Income Tax Withheld on Eligible Distributions for Reason of Extreme Economic Emergency Due to Hurricane María” field (location 1005-1016) was added.

Removed Fields/Box

  • Form 480.7C
    • The “Plan or Annuity Type” box on form for “Annuity” field (location 322- 322) was deleted.
    • The “Deferred Contributions” field (location 479-490) was deleted.
    • The “Income Accretion” field (location 503-514) was deleted.
    • The “Others” field (location 552-563) was deleted.

Other Changes

  • Form 480.7C
    • New distribution codes and instructions
      • Code N: Eligible Distributions for Reason of Extreme Economic Emergency Due to Hurricane María
      • To inform more than one code (up to two codes), if applicable. No combination of two Codes can be included that does not include Code N. Do not allow combinations of Repeated Codes (Example: AA, NN).

 To view the revised Publication, please click here.

Author

Adam Rivera

Adam Rivera is a member of the Regulatory Analysis Team’s Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.
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