- What To Do If You Can’t Pay Your Tax Returns

If You Cannot Pay Your Tax Returns:

• File your return anyway:
Even if you can’t pay you tax bill in full, make sure to file your return in time.  Revenue has systems for identifying and actively pursuing those who fail to file returns, and surcharge of up to 10% of the tax due can be charged on the late returns

• Tax due for 2011 is your first priority
Once the pay-and-file date passes, any unpaid income tax for 2011 can trigger Revenue’s debt collection procedures.

• If you cannot pay the 2011 debt in full, seek an arrangement with Revenue for instalment payments:
If you need to take this approach, contact Revenue as soon as your return is filed. Paying tax by instalments is not an easy option as interest is charged on late payments.

• Pay as much preliminary tax for 2012 as you can, as soon as you can:
If you cannot pay your preliminary tax liability for 2012 by the deadline, you may face interest charges at a daily rate of 0.0219% (or 8c per annum), while the payment is outstanding.

• Keep track of your arrangement with Revenue:
It is essential to keep to the terms of the phased payment agreement with Revenue. If you are struggling to keep up to date with the payments and are likely to default, contact Revenue immediately and try to agree revised terms.
Getting your tax affairs in order is really important. An AITI Chartered Tax Advisor can help you complete your tax return and agree a workable phased payment arrangement with Revenue if you are in difficulties

Read More…


RTE Business Headlines