Owing revenue money from 11 years ago

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Scuby2019

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Hi
Hoping someone can give me some advice.
My husband was claiming “single person tax credit” from 2007 - 2012 Edit - Single Parent Tax Credit , not Single Person
In 2012 he told revenue he wasn’t single as we had a child in 2006
Therefore he shouldn’t have been claiming the tax credit, so revenue adjusted his tax credits for the years 2013,2014,2015
to pay the tax back.

recently we have been given granted incapacitated child credit. We are getting this back dated.

Howver revenue rang my husband & said he owed over 2k for 2008
This is going back a 11 years ago and they won’t process the p21 balancing statement for 2015 until this is paid?
Why is this only coming up now? Does he have to pay this even after 11 years?

hope that makes sense? Thank you
 
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Scuby2019 said:
Hi
Hoping someone can give me some advice.
My husband was claiming “single person tax credit” from 2007 - 2012
In 2012 he told revenue he wasn’t single as we had a child in 2006
Therefore he shouldn’t have been claiming the tax credit, so revenue adjusted his tax credits for the years 2013,2014,2015
to pay the tax back.

recently we have been given granted incapacitated child credit. We are getting this back dated.

Howver revenue rang my husband & said he owed over 2k for 2008
This is going back a 11 years ago and they won’t process the p21 balancing statement for 2015 until this is paid?
Why is this only coming up now? Does he have to pay this even after 11 years?

hope that makes sense? Thank you
Click to expand...

You can be married, have a child and still be assessed as a "single person". Its a basis of assessment - rather than a statement of relationship status.
 
Hi - thanks for your reply!
We got married in 2012 & only started getting joint accessed this year.

but back in 2008 he was single accessed.
I just don’t understand why after 11 years they are bringing up money owed from 2008. Why have they not got on sooner?

we requested a p21 statement for 2015 as we were hoping to get a refund for the back dating if the incapacitated credit.

they are asking him to pay the 2k for 2008.
Which we can’t afford.

is there a cut off point for money owed to revenue.

example: we can only claim back 4 years
Can revenue come after you for money owed from 11years?
Thank you
 
It should only be for the single parent
Tax credit of €1830 for 2008
I don’t know how they are getting the figure
Of €2,670

My husband said he would look into and call them back.
We have no documents of anything for 2008 in his archive online.
Do we just have to pay it? After 11 years
 
My husband was in shock when he was talking to them & didn’t ask many questions. He is going to give permission for me to talk on his behalf tomorrow.
I’ll find out more.

it just seems so long ago &they never contacted him about the monies owed
 
Scuby2019 said:
My husband was in shock when he was talking to them & didn’t ask many questions. He is going to give permission for me to talk on his behalf tomorrow.
I’ll find out more.

it just seems so long ago &they never contacted him about the monies owed
Click to expand...

Well something must have happened to give rise to an additional tax liability in 2008, which cannot be solely explained by overclaiming OPFA. Until we know what that is we cannot advise you.
 
To answer your question, if the liability outstanding is on record since 2008 then legally yes they can still collect it.

If there wasn’t already a balancing statement for2008 showing that liability, then the statutory 4-year time limit would preclude revenue from seeking to go back that far.

So what your husband needs to do is clarify what has gone on previously in relation to 2008, which is best done by talking to Revenue.
 
Update

Chatting to revenue today with my husbands permission.
He was receiving one parent tax credit in 2008 - which he should haven't.
in 2012 we got married.
revenue adjusted his tax credits for 2009-2011 to pay those years back.
For 2008 he was sent a p21 and demanded to pay revenue back the 2k within 30days.
He didn't pay it. 11 years on never heard anything from revenue regarding money owed.
he doesn't recall this ever coming up before

until recently we requested a p21 statement for 2015 as we were hoping to get a refund for the back dating of the incapacitated credit.


they advised me today that we have to pay the outstanding money owed for 2008 before they can issue the p21 for 2015
I asked can they not offset the 3300 tax credit owed for 2015 against 2008
they said no! it has to be paid first. The system wont let the p21 to be generated, nothing they can do.
I asked if he pays 2008, is there any other tax outstanding? they said they cant see but there could be.
I asked if someone that had access could tell me... so if I pay the outstanding amount we wont be hit with another bill?
only the computer knows …..

bottom line ok - so he owes money for 2008
This is the last year we can claim the back dating of the incapacitated credit. if we don't pay we will lose the 3300 for 2015
legally can revenue withhold from giving us our p21 for 2015?

I don't have the money to pay for 2008

any advice or thoughts welcome
 
Surely no one forgets owing a few thousand to someone. I wouldn't forget if someone owed me money no matter how small, so I guess I wouldn't forget owing it to someone else either. I do feel sorry for you both but it seems the money is owed and has to get paid. Maybe someone in the family will loan it to you and pay it back when you get your payment.
 
I 100% agree with you, I certainly wouldnt forget owing such a huge amount of tax...
they said they posted the p21... I asked did they not follow up after 30 days of no payment?
if I owed money to SKY for example, they would be on my case.. surely revenue don't let things go???

I have no problem paying it & would get a loan.if they could tell me nothing else will pop up from the passed
but no one in revenue can give me an answer.

so i could be in the position & get a lend, pay off the amount owed.. get my refund for 2015.
pay off the money lent and be up€600

or pay and be landed with another tax bill from years ago and not be in a position to pay off the loan

i said if i dont pay what would happen, she said they wouldnt issue 2015s p21 and it will be in limbo
 
It's a wonder Revenue didn't reduce his future years credits to recoup the overpayment, I'd imagine very few people actually pay back a lump sum in those sort of scenarios.

If you are an account holder with a credit union I'd try them for a loan.
 
they did reduce his tax credits for 2009-2011
but not for 2008??

I am not in a position to get a loan from the CC
it would have to be a family member
 
Unusual that Revenue would have let this go for so long but now that their attention is drawn to it, it is inevitable that they will pursue it. So you/your husband have a choice:

Get a loan immediately, hope there are no other outstanding taxes due, and put yourself in a position to claim back overpaid tax for 2015
or
Delay this, still end up owing the same amount but losing out on claiming back tax for 2015.

Seems like a pretty straightforward choice. Surely your husband should have a good idea if there are any more skeletons in the closet? I would speculate that Revenue probably aren't aware that you owe any more but will not tell you this in case anything unexpected arises.
 
I ran into this discussion while looking for something else. It's strange on how the system works in Ireland. In most places where I lived in Europe there is a specific amount of time within which the tax authority has the power of requesting and enforcing a tax payment. It's normally 10 years. If the taxpayer has been informed about an outstanding payment and the taxpayer has disregarded it, then the tax authority (before the 10 years term expires) has to take other steps to recoup the credit. That step (even a simple reminder registered letter) will allow the tax authority to open another 10 years "window" starting from that last action. If however the tax authority leaves the case dormant and fails to follow up within the 10 years since the last action, then they are barred from trying to recoup the credit. If it takes a tax authority 11 years or more to follow up on a disregarded payment then I belive they should be barred from requesting it same as happens in most of the EU countries. In Scruby's case it looks like they cannot even tell her if any other tax is due so what if at some stage they find a tax due from maybe 25 years ago ?
 
That thing about the system not allowing a P21 to be generated because of a prior year liability, sounds like nonsense. It makes no sense; a P21 is the equivalent of a tax assessment, and each year is standalone, so I can’t see any reason why the system could be set up in such a way. I’d say it actually might be contrary to the tax legislation for Revenue to refuse to issue you with a P21, system issue or not, that’s their problem to solve.

There’s also no reason why they shouldn’t be able to take the 2008 underpayment out of the 2015 refund, that’s what normally happens in these situations (although normally it’s not 10+ year old liability being collected).

I think you may need to call back and say you want to speak to someone more senior to complain, as what you were told today just sounds plain wrong. They do have a lot of very new and inexperienced people manning the phones these days so it could just be down to that...
 
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