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How to submit a claim for errors in your personal income tax (IRS)?

How to submit a claim for errors in your personal income tax (IRS)?

If you have received the settlement of your IRS and detected any errors made by the Tax Authorities on their calculations, find out what are your rights and how to issue a formal complaint.

The last submission of IRS tax returns, relating to income in 2015 has raised many doubts among taxpayers. The fact that it was the first time tax returns were filed, after the entry into force of several new IRS laws, forced taxpayers to adopt new procedures in relation to its IRS. On the other hand, the computer system of the Tax Authorities has been changed to accommodate the implementation of the new rules and has undergone several improvements and updates during the period of submission of the tax return.

This resulted in delays in the settlement and processing of reimbursements to many taxpayers (but, despite the delays from the previous years, the repayments are still ongoing within the legal deadlines) and also difference between the simulations made at the time of the submission and the IRS bills.

If you have received the settlement note and realized that there was an error on the calculation of the final accounts, you may file a complaint to the Tax Authorities. But beware: before you decide to submit a claim is important to check if you have reason to do it.

For instance, when it concerns, for example to errors in withholding taxes, in the case where the entities to whom the taxpayer worked did not declare those amounts. If the taxpayer has with him a proof of the actual values ​​of withholding taxes that were held last year, he must submit a complaint and attach the documents that prove the merits of that complaint.

Do not forget the legal deadlines

If you are going to issue a complaint, do not forget that you must do so within the legal deadlines. In the case of complaints related to the settlement of the IRS, taxpayers may do it within 150 days of notification of the settlement.

An important point: the rules indicate that taxpayers may not have both an internal appeal and ask for judicial review on the same fact. “It cannot be made a complaint, when it has been lodged judicial review on the same basis”. This means that first the taxpayers must issue a complaint with the Tax Authorities and wait for the decision. If it is unfavourable to the taxpayer and the taxpayer is still not convinced, then he can advance to the hierarchical appeal and/or request a judicial review.

Tracking the evolution of the claim?

After presenting the administrative claim you can track the status and progress of your complaint at the Tax Portal. The system will tell you the process number, the date and details of the tax in question, the tax office where the complaint has been filed and the process situation on a given date.

Here the various stages through which the internal appeal process can pass, according to the information contained in the Tax Web Portal.

  1. Initiation: The process was initiated in the service of finance
  2. Instruction: finance services are to instruct the file containing the information required for the decision.
  3. Waiting for distribution: The process has not yet been distributed to technical for consideration.
  4. assessment: The process has already been distributed to the technician who is preparing the decision.
  5. Referred to the Finance Director: The case was referred to the regional peripheral organ of tax administration, the competent authority for the decision.
  6. For Preliminary Hearing: It has been prepared the draft decision, pending the exercise of the right to a prior hearing of the complainant.
  7. Wait Decision: It has been exercised prior hearing and the new elements raised at that hearing will be taken into account in the decision to be taken.
  8. Termination by Upheld: The process was terminated, and the claim of the complainant deserved appointment.
  9. Partial Deferral of Extinction: The process was terminated, and the claim of the complainant deserved partial success.
  10. rejection by Extinction: The process was terminated, since the claim of the complainant deserved appointment.
  11. filing for Extinction: The process was terminated by objection of inadmissibility or because the person concerned, upon written request, gave the procedure.
  12. Termination for transfer to another service of Finance: The process was terminated because the tax office which was established was not competent for the decision.

Please feel free to contact us to discuss your personal situation, whether this is related to IRS or any other tax advice.