The Treasury will offset your income tax refund against any debts you have

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Mitu8990
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Joined: Tue Dec 24, 2024 10:44 am

The Treasury will offset your income tax refund against any debts you have

Post by Mitu8990 »

Once the Income Tax Return has been filed, the taxpayer is anxious to receive his refund. But sometimes, it does not arrive because the amount is used to cover outstanding amounts to the Administration. The tax refund offset procedure can be used to settle debts that are in the enforcement period, such as traffic fines or those derived from taxes. But it can also be applied to deferrals in force.

Offsetting credits with debts
Offsetting means that the debt to which it is applied disappears and is considered settled. If its amount is less than the refund requested, the Treasury will pay us the difference by bank transfer. If its amount is higher, we will continue to be debtors for the amount that remains to be paid.
Sometimes it is thought that refunds can only be offset against unpaid taxes of the same nature. But this is not the case. An income tax refund can be applied to the payment of a VAT deferral, even when we are paying the installments strictly on the agreed date. It is not necessary for there to be a breach for one amount to be settled with the other. Not only overdue debts are offsettable, but also those that are in the voluntary period.
When the Treasury denmark whatsapp mobile phone number list applies an offset, it always sends a letter to the taxpayer informing him of the procedure carried out and the amount that remains in his favour, if any.

The problem is that this letter can arrive when the difference has already been paid to us. The taxpayer receives a smaller amount than he should, or does not receive any at all and, at first, does not know if it is due to an error by the administration or if he may have some old debt that he no longer keeps track of.
Another surprising fact is that the communication from the Tax Agency usually contains the text “ Compensation at the request of the taxpayer ”, even when the taxpayer has not requested anything. In reality, it is a system that is carried out ex officio, without the need for any action, so the text is nothing more than a mere formality.
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