Tax bill from 2022

[Logo]

Posting for an another. A tax bill was received recently stating that tax payment is overdue from 2022. The accounts were submitted by an accountant for 2022. Revenue has applied a substantial additional charge for failure to pay on time. This person has been with the same accountant for over 20 years without this problem. Does anyone know how to address this issue? Thanks

 

[Gordon Gekko]

Posting for an another. A tax bill was received recently stating that tax payment is overdue from 2022. The accounts were submitted by an accountant for 2022. Revenue has applied a substantial additional charge for failure to pay on time. This person has been with the same accountant for over 20 years without this problem. Does anyone know how to address this issue? Thanks

Ask the accountant for an explanation?

 

[Harvard]

Posting for an another. A tax bill was received recently stating that tax payment is overdue from 2022. The accounts were submitted by an accountant for 2022. Revenue has applied a substantial additional charge for failure to pay on time. This person has been with the same accountant for over 20 years without this problem. Does anyone know how to address this issue? Thanks

What exactly do you mean by saying the accounts were submitted? Was a return filed?

 

[T McGibney]

. A tax bill was received recently stating that tax payment is overdue from 2022.

Very easy solution here.

Pay the tax.

It's 16 months overdue.

 

[T McGibney]

Ask the accountant for an explanation?

For what? Their client's failure to pay on time.what is clearly a substantial tax bill?

 

[Gordon Gekko]

For what? Their client's failure to pay on time.what is clearly a substantial tax bill?

Hi Tommy,

It reads like it’s the accountant’s mistake.

Regards,

Gordon

 

[T McGibney]

Hi Tommy,

It reads like it’s the accountant’s mistake.

Regards,

Gordon

Hi Gordon,

The obligation to pay a tax bill rests with the taxpayer. The amount here is clearly significant. Would you not think something was amiss if a major and anticipated expenditure item for whatever reason was never deducted from your account over a period of 16 months?

 

[Harvard]

Hi Tommy,

It reads like it’s the accountant’s mistake.

Regards,

Gordon

The ball has been dropped here on one side or the other. It could be as simple as the accountant sending an email to the client which the client failed to act on or maybe the accountant failing to come back to the client to advise them of a liability or even a case of an email getting lost in spam.

The onus is always on the taxpayer to pay their taxes as they fall due but the account also has a professional duty to their client.

 

[Gordon Gekko]

Hi Gordon,

The obligation to pay a tax bill rests with the taxpayer. The amount here is clearly significant. Would you not think something was amiss if a major and anticipated expenditure item for whatever reason was never deducted from your account over a period of 16 months?

Ah come on.

If I send my stuff to my accountant to calculate and remit my tax liability and he or she drops the ball, whilst the primary liability rests with me, clearly the accountant is to blame.

 

[T McGibney]

Ah come on.

If I send my stuff to my accountant to calculate and remit my tax liability and he or she drops the ball, whilst the primary liability rests with me, clearly the accountant is to blame.

The return was submitted according to the OP.

The liability sum must have been very large indeed for its non-payment to now trigger

... a substantial additional charge for failure to pay on time.

We can assume that the original amount must at least been in the tens of thousands, given that Revenue only charge 8% p/a on late payments. This bill is 16 months overdue.

Is it credible that a taxpayer would not notice the non-payment of such a large sum if they were keeping even an occasional cursory look at their bank account?

Anyone who conducts their affairs on the assumption that their accountant will never make a mistake will sooner later learn the folly of that.

 

[Gordon Gekko]

The return was submitted according to the OP.

The liability sum must have been very large indeed for its non-payment to now trigger

We can assume that the original amount must at least been in the tens of thousands, given that Revenue only charge 8% p/a on late payments. This bill is 16 months overdue.

Is it credible that a taxpayer would not notice the non-payment of such a large sum if they were keeping even an occasional cursory look at their bank account?

Anyone who conducts their affairs on the assumption that their accountant will never make a mistake will sooner later learn the folly of that.

I get you. I am reading it as there’s a mistake in the return which has triggered a further liability. You’re (possibly correctly) reading it as the return was submitted but the tax never collected, which someone should notice.

 

[T McGibney]

I get you. I am reading it as there’s a mistake in the return which has triggered a further liability. You’re (possibly correctly) reading it as the return was submitted but the tax never collected, which someone should notice.

If it's a mistake, it must be a massive one.

 

[Harvard]

Not a whole pile to go on from the op. So we could all be speculating well wide of the mark.

 

[Philip S]

One thing I have seen a few times and is easier to miss is the payment was instructed but the payment was not collected possible due to incorrect details or insufficient funds. If the payment bounces Revenue don't inform any of this. If this is the issue the accountant and possible OP have seen a payment instruction and have no reason to believe the payment would bounce so go forward on concept it was paid. Either that or they relied on an offset from another tax head that was never performed. This is assuming it is not as simple as the payment was never instructed for some reason.

 

[Monbretia]

I had problems with a payment twice this year, first time it never went through because the AIB account that had been used for years no longer offered direct debit facilities, we did get a letter though from Revenue to say payment was outstanding. I then went in to ROS and input debit card details to do a one off payment and it all looked fine but again it didn't work for some reason and the first I heard was another letter from Revenue. I hadn't actually noticed that the payment had not gone from bank account as it was from a little used account but there was nothing in my inputting of the details online that made it look like it wasn't successful. I will check in future!

OP post needs a bit more clarification, it's not unknown for there to be a mistake on the accountant's side but of course the buck stops with taxpayer.

 

[elcato]

If it was a form 11 would the time overdue not be only 5 months since October 2023 ? It's hard to know the OP's definition of substantial also.

 

[T McGibney]

If it was a form 11 would the time overdue not be only 5 months since October 2023 ? It's hard to know the OP's definition of substantial also.

That is true, but if it's interest that has been charged (and that too is unclear as of now) it would date from the original due date for 2022 Preliminary Tax (31 October 2022).