Do you know about the 480 Form? It is an informative document where payments subject to withholding or granted to a supplier for services or distributions are summarized. This form has different variants. They depend on your current tax contributions.
Here we share a bit about two specific forms: the 480.7G and the 480.7F. Learn how they differ from one another and to whom they apply.
What are Forms 480.7G and 480.7F?
Forms 480.7G and 480.7F are two variants of Form 480 that are used in individual income tax returns in Puerto Rico.
How are Form 480.7G and Form 480.7F different?
Their differences consist in the fact that Form 480.7G is delivered to every educational institution that is eligible to certify the required information of each student eligible to claim the American Opportunity Credit in the Individual Income Tax Return. The purpose of this form is to claim the credit and to be able to validate the information needed by the eligible student.
Form 480.7F, on the other hand, is used by commercial entities that are providers of internet access, cable or satellite television in Puerto Rico, or telecommunications services, that receive payments for advertisements or insurance premiums. Insurance premiums are as defined by the Puerto Rico Internal Revenue Code.
Important points for form 480.7G and form 480.7F:
- Form 480.7G:
- The information must be delivered to the student who belongs to the educational institution.
- Form 480.7F:
- This statement must be delivered to the person who made the payment within the next 7 calendar days, starting from the established deadline date.
- The Code imposes penalties for failing to report payments received on Form 480.7F or for failing to file the same. However, any customer in his industry or business who makes payments for these services through a residential account and requires this declaration for tax purposes must request it from the service provider.
When should these forms be processed?
It is crucial that these forms be submitted electronically to the Department of Treasury before February 28 of the following calendar year in which the payments were received since they are essential documents for everyone's compliance with tax obligations in Puerto Rico.
If you are a university institution, you must prepare for your student enrollment, according to the instructions of the Department of Treasury, the informative 480.7G to report your university expenses. In the same way, as a telecommunications company or provider of internet, cable, or satellite services in Puerto Rico, you must be in charge of preparing those clients that request evidence of payments to be able to report them as their operating expenses with the informative 480.7F. This is not compulsory, it only applies to clients who request it.
We make the process of transferring these forms simple and fluid so that you can prepare your tax returns as quickly as possible. Remember that you can sign up for Expert Tax and try it for free. Do you need to prepare one of these forms? You can reach us at email@example.com.