Revenue letter for tax plus penalties and interest

mathepac said:
... I'm sorry (and based on personal experience I find it very surprising) to hear of the difficulties in communications with Revenue which I am at a loss to try and explain.
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It might come down to something very simple: a clash between the taxpayer and one individual Revenue staff member (and I'm not suggesting who might have got the tone wrong: it might be either, or it might be both).
 
Padraigb said:
It might come down to something very simple: a clash between the taxpayer and one individual Revenue staff member (and I'm not suggesting who might have got the tone wrong: it might be either, or it might be both).
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Everybody thanks for your replies. No taxpayer got the tone right, was well instructed by me on that to be polite and consistent at all times. We think the revenue person speaking doesn't understand how to calculate tax and how their systems work as he had to constantly go behind the scenes and check information with someone else. When he came back with attitute (I've got you now !) he was wrong, and went back again and came back again with wrong information.

He even mention that spouse had received a refund of x in 2003 for which as it's not joint assessment I believe he should not have been told.

His accountant has had it with revenue in relation to this. Taxpayer and accountant get on very well. As I said revenue are not replying properly to accountants correspondance either.

Personally I think revenue made a mistake but don't want to acknowledge it. They need to get someone competent to drag out all the files and see where everything went wrong and make a decision but to get them to that point seems to be very difficult.

You guys have no idea of the grief this has cause the compliant tax payer who just wants everything sorted. A simple competant person in revenue to take responsibility and sort it out. Too much to ask it seems.

Incidentally they've now also discovered that due to maternity leave in one of the tax years, tax was also overpaid but seemingly this is out of time to claim now.
 
The revenue are taking very high handed action here (I have been following this case with interest and am not a tax expert) but I cannot find anything specific that prevents them from doing so.
Seems to me that client met the wrong person on her visit to revenue. Is there any hope of moving this case up the scale to a higher power.

Would the FOI be a route to get out the full story.

And yes I do understand the clients stress. I would be spitting fire
 
Surely by the quote below the accountant was responsible? I'm surprised the accountant didn't check the balancing statements when he was told the client got a refund they weren't expecting.
Revenue made the error but that doesn't excuse the fact that the accountant didn't follow up on concens by the client!

QUOTE>>Taxpayer was surprised to receive rebates and asked accountant were they correct and was told yes.
 
The tone here agrees with what I've been thinking with regard to the Revenue... everything is fine until something goes wrong, and then the taxpayer (who might not have a lot of money) has to face the Revenue Commissioners (with their experts, lawyers, and limitless funds compliments by statutory powers)
 
Yes it's like David and Goliath, taxpayer was on the dole, now not entitled to that and dependant on spouse and some savings plus the investment property but the money from that goes on the mortgage. Not even sure if the accountant is going to charge a fee for all the work done on trying to resolve this with revenue and meanwhile the taxpayer has had to do an awful lot of legwork themselves.

At the last meeting with Revenue the official said they'd get the offical in charge of the case to come out and speak to taxpayer but then this person wouldn't come out and relayed that they would make an appointment with taxpayer. I've advised her to only speak to them by registered letter and if they don't reply to all the points in a letter to write another letter. They've tried the meetings with revenue and phoning them option and have had no progress. Anyone been through this who understands the procedures? It's like banging your head against a brick wall.
 
Please clarify what method was used.

On your post 15/01/10- It is Individual

On your Post 24/03/10- It is Separtely Assessed

You have separate assessment v separate treatment(single individual) which are two different methods

If as per post 24/03/10 it is Separtely Assessed as per accountant written on form- The wife could get the unused credits bands from other spouse

Please take a read of link of different methods and what method was written on form

http://www.revenue.ie/en/tax/it/cred....html#section6

How is the husband being treated in This?
 
irishmoss said:
Surely by the quote below the accountant was responsible? I'm surprised the accountant didn't check the balancing statements when he was told the client got a refund they weren't expecting.
Revenue made the error but that doesn't excuse the fact that the accountant didn't follow up on concens by the client!

QUOTE>>Taxpayer was surprised to receive rebates and asked accountant were they correct and was told yes.
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I would agree- accountants would typically calculate what the tax liability/ refund should be for any given year and reconcile it to the balancing statement. any discrepency should have been resolved at the time
 
papervalue said:
Please clarify what method was used.

On your post 15/01/10- It is Individual

On your Post 24/03/10- It is Separtely Assessed

You have separate assessment v separate treatment(single individual) which are two different methods

If as per post 24/03/10 it is Separtely Assessed as per accountant written on form- The wife could get the unused credits bands from other spouse

Please take a read of link of different methods and what method was written on form

http://www.revenue.ie/en/tax/it/cred....html#section6

How is the husband being treated in This?
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In 2005 revenue changed the format of Forms, so the box for married was ticked, basis of assessment written by accountant in biro as seperate assessment. Prior to this the revenue box was ticked for seperate assessment. Taxpayer is looking at copies of returns. Sorry if I was unclear, it's very difficult doing this for someone where I can't see the documents and who lives in another country as I do. Revenue put in the married allowances for this person

Spouse was always taxed as individual under PAYE system, never got married allowances.
 
What is the position with Husband, Did he get married credit as well, or did he overpay tax at his side

You would nearly want to be looking at both assessments at same time
 
papervalue said:
What is the position with Husband, Did he get married credit as well, or did he overpay tax at his side

You would nearly want to be looking at both assessments at same time
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Would you believe that due to being unemployed, unpaid parental leave, for a while in one of those years they overpaid tax but can't claim it back as it's outside the 4 year rule.

They are looking at both assessments to figure out how everything went wrong.
 
Hope this doesn't sound personal, but are there children of the marriage? Both parents can get the additional lone parent credit in the case of shared custody. If that were the case there would no longer be an underpayment.
Sounds like your friend has been landed with the worst Revenue employee ever. Best of luck!
 
Revenue letter for tax plus penalties plus interest

There was a good result on this case. Taxpayer finally got to see someone in revenue who has the ultimate control to make a decision. Result is that tax payer has to pay neither the tax nor interest nor penalties. It's somehow being written off. Very surprised that the tax even is being written off. We are aware that it may cause an issue in the future if taxpayer goes back working or applies for a tax clearance certificate and that 'the computer' will show up something negative. But for now tax payer is very happy. What was in the taxpayers favour as far as we can tell was that they were as clean as a whistle, the revenue had made an error, (which they will never acknowledge) and the decision maker had sympathy in these trying times. Thanks for the good advice on this. One on one meetings with revenue also really important we believe.
 
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Good to hear that it's been resolved, but if I was involved I'd be arguing that Revenue were out of time to revisit those years. There was no fraud or neglect and the information provided to Revenue by the taxpayer was correct.
 
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