2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART III - Decedent’s Estate and Gifts (§§ 31001 — 31176) › Chapter 1025 - Tax Returns, Payment of Taxes, Procedure and Administration (§§ 31121 — 31176) › Subchapter D - Tax Liens (§§ 31161 — 31165) › § 31162 - Lien cancellation

(a) Obligation has been met.— The Secretary shall, subject to such rules and regulations as he/she may promulgate, issue a lien cancellation certificate in connection with any and all property subject to the lien imposed under § 31161 of this title, if the obligation secured by such lien has been fully met.
Notwithstanding the foregoing provisions, the Secretary shall not issue the certificate cancelling the lien in full on property intended for release from such lien, if it is proven that the self-assessed taxes under this part were not reasonably determined. Neither shall the Secretary issue the lien cancellation certificate in those cases in which the decedent or donor holds stock of a corporation or shares in a limited liability company or a partnership that constitute control of said corporation, limited liability company, or partnership, as defined in § 30044 of this title, and the deduction for property located in Puerto Rico provided for under clauses (2), (3), and (5) of subsection (b) of § 31032 of this title and under clauses (2) and (4) of subsection (b) of § 31092 of this title is claimed, unless the corporation, limited liability company or partnership, whichever applies, is current in the payment of its tax obligations with the Department.
(b) Conditioned authorization.— The Secretary may, notwithstanding the provisions in subsection (a) and subject to such rules and regulations as he/she may promulgate, issue a conditioned authorization regarding any lien imposed under this part in connection with any portion of property subject to such lien, if the Secretary determines that the value of the portion of such property subject to lien is, after having discounted all preceding liens, at least double the unpaid amount of the obligation secured by such lien. The purpose of such conditioned authorization shall be to sell the property or obtain financing for payment of any taxes imposed by the Government of Puerto Rico, the municipal governments, or any instrumentality thereof. When the proceeds of the sale do not cover the amount owed, the Secretary shall receive the amount of the proceeds of such sale as partial payment of the debt.
(c) Uncollectible taxes.— The Secretary may, subject to such rules and regulations as he/she may establish, issue a cancellation or a conditioned authorization certificate, as the case may be, on the lien provided in § 31161 of this title, if he/she ascertains that the taxes imposed, together with interest thereon, have become uncollectible by reason of the time elapsed.
(d) Term to issue lien cancellation certificate.— The Secretary shall issue the lien cancellation certificate provided in § 31162 of this title within a term that by no means shall be greater than thirty (30) days counting from the time to file the final estate tax return together with the payment of the corresponding self-assessed taxes in connection with the decedent’s estate, as well as any such information as the Secretary may establish by regulation. Any tax returns filed with the Secretary that fail to include the documents required by law or by regulation, shall be treated as tax returns which had never been filed at all. The Secretary shall notify the executor or the heirs, within a term of thirty (30) days, as provided above, of any request for information which impedes accreditation for having filed the tax return and continuation of the procedures to issue the cancellation certification. Except in cases in which the corresponding tax obligation is in dispute, or all of the information or documents required have not been submitted, after expiration of the thirty (30) day term from the time of having filed the final tax return and the Secretary has not taken any action, the immediate issue of the lien cancellation certificate shall be mandatory at the request of any interested party.
Notwithstanding the preceding provisions, the parties may extend this term by mutual agreement when the time extension is convenient for the executor or the heirs.
(e) Effect of full cancellation or conditioned authorization certificates.— A full cancellation or conditioned authorization certificate issued pursuant to the provisions of this section shall by no means impair the rights of the Secretary to impose and collect taxes under this part regarding the transfer that originated the lien provided in § 31161 of this title.
History —Jan. 31, 2011, No. 1, § 2054.02, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 128.