April 19, 2024

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IRS: How to Join a Lost Debt Settlement

IRS: How to Join a Lost Debt Settlement

The Ministry of Finance is working to establish an automatic mechanism for notifying debtors and a more flexible framework of standards, in order to reduce losses in debt settlements at the Tax Office.

The number of lost arrangements rose to 232 thousand or 1.2 billion euros In terms of balance, it has raised the alarm for financial employees, who are impatiently searching for ways to limit the phenomenon, which is having effects on state revenues.

The “fatigue” recorded on the front of the list is also reflected in the IRS' delinquent debt “map.” Of the total of approximately €81 billion, the actual overdue balance, after deducting unacceptable collections of €26.6 billion, only 5.8% (€4.7 billion) has been settled.

The new central digital system for unified monitoring of taxpayer obligations, Without human intervention, which is promoted by the Ministry of Finance, it will notify debtors of the impending loss of regulation and threaten the enforcement of compulsory collection measures such as confiscation and auctions. Especially with the new mechanism:

  • All compliance conditions with the regulation will be monitored digitally and centrally
  • If the taxpayer does not comply with any of the conditions, he will receive compliance notifications in order to settle the outstanding matter in a reasonable time, and if he does not do so, the regulation will be lost by a central process and not by each local head of the tax office.

Along with the new provisions of the Tax Procedure Code, debtors who have lost the old preferred arrangements of 72, 100 and 120 installments have the possibility To join again under the following conditions:

  • They have paid all overdue installments of the arrangement in full
  • They have submitted their income tax and VAT returns within 3 months of the filing deadline. If the deadline passes by December 31, 2023, they can apply after 5 months, i.e. by May 31, 2024.
  • They have paid or settled their new debt within 3 months of the repayment deadline.
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Under the current system, failure to submit the required income tax and value-added tax returns or delay in submitting them even by one day results in the loss of other debt arrangements. The same applies to any new delinquent debts.

Source: ERT News