But this wasn't about ignorance, it was the revenue who made the error and the taxpayer and the accountant didn't see it.Unfortunately the first rule of thumb for revenue is 'Ignorance is no defense' so regardless of who is responsible for the error they can pursue the money.
A paye worker with rental income has received two letters from revenue to pay tax plus penalties and interest for 2003 and 2004.
[SIZE=+0][SIZE=+0]The letter from revenue is dated 20th December and received today 15th January with a 30 day deadline to appeal from the date of the letter.[/SIZE][/SIZE]
[SIZE=+0][SIZE=+0]A rental property was purchased in 2000, and four returns were done in 2006 for 2001, 2002, 2003 and 2004 and revenue issued a rebate for each of those years. (After this returns were done annually and a balancing statement received and no rebate)[/SIZE][/SIZE]
[SIZE=+0][SIZE=+0]The error seems to have been that the taxpayer had received married persons allowances/credits instead of being assessed as an individual. The accountant states that he has the form he sent in in which the taxpayer was to be taxed as an individual. [/SIZE][/SIZE]
Questions
Why is the revenue letter with the appeal date of only 30 days only received so late, is this normal, (the accountant also received the letters on the same date). It only gives now 4 working days to bring an appeal. Can one initially appeal that the appeal date should be extending to give time to fully investigate.
Why have revenue gone back only to 2003 initially, is it because of the 6 year rule in relation to book keeping. We think that the 2002 return is also calculated incorrectly due to the doubling of allowances, why didn't revenue check this as well ?
If the error is due to a computer error by revenue hitting the married person button, then the tax payer is not liable surely for penalties and interest, if the revenue issued an incorrect credit/allowances document is the onus on the taxpayer to check it and point out the revenue error (in this case taxpayer did not notice)
If the error is a revenue error who will be liable for paying the accountant for the extra work this appeal entails.
The taxpayers is now unemployed and unable to pay back the money in one lump sum, what can be negotiated with revenue. Taxpayer wants to pay 20 Euro a week as doesn't have circa 15K lump sum as rebates were spent etc.
Taxpayer was surprised to receive rebates and asked accountant were they correct and was told yes.
Personally I'm wondering why if the revenue made the error why the tax payer has to pay anything. Taxpayer is very annoyed as they have done everything to comply they feel and might as well not have bothered. Very stressed about this etc
any chance you could get how the 15k is made up?
what is the tax amount each year?
what is the interest/penalty?
what standard cut off point was used- married/single?
was their any income liable to tax at higher rate?
was this as a result of some audit?
Their is a major difference between marries/single- Did Accountant not check assessment?
Was she married before?
regardless she would have to pay back overclaimed amount- worry about interest/penalties later and probably get away with not paying them once a proper appeal sent it explaining what happened
Ultimately, its the tax-payer's responsibility to ensure that credits, allowances, deductions, etc are correct and that returns are done on-time and accurately.
Your friend may have a case against the accountant, but not against Revenue.
There is a recent post where Revenue made a 25% reduction in penalties and interest as a gesture of culpability in a similar case (incorrect tax credits resulting in under-paymant) but I can't find it.
All Revenue post is printed, issued and posted centrally via their Logistics Branch and this seems to have resulted in delays in deliveries to clients (everything is printed in bulk, bagged and delivered in bulk to the super-duper hyper-efficient centralised sorting office in Portlaoise ).
Thanks Mathepac, but let's forget about an accountant for a moment, if revenue have made an error by putting in the wrong credits and the taxpayer doesn't know they have done so how can the tax payer be at fault?
Thanks Mathepac, but let's forget about an accountant for a moment, if revenue have made an error by putting in the wrong credits and the taxpayer doesn't know they have done so how can the tax payer be at fault?
Are the any circumstances where the revenue can be deemed to be at fault.
In relation to posting documents surely an important document with a deadline should be sent by registered post so the revenue can confirm it was received and confirm that the taxpayer has been given the correct period to respond. What would have happened if the letter was another week, the taxpayer would be out of the reply time?
When the taxpayer received the rebates she was so surprised she asked the accountant was it correct. Do accountants check the calculations made by revenue or do they just accept them.
Naturally after this the taxpayer will check very carefully all documentation but had been under the impression that that was why one hired an accountant !
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