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Maquiladoras Face Timing Crunch Waiting for Covid-19 Tax Help

March 25, 2021, 8:45 AM

U.S.-owned manufacturers in Mexico are looking to the country’s tax authorities and the IRS for answers soon as they try to avoid getting hit with double taxes after the pandemic roiled their operations.

Like many industries last year, some of the manufacturers—called maquiladoras—were forced to shut down factories and take on unexpected expenses like buying protective equipment for employees. Now some companies have questions about how to account for those costs under an agreement between the U.S. and Mexico.

The two countries are working on how to address tax questions arising from the pandemic, but that agreement is unlikely to ...

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