Taxation Repayment

ktc

Is there an appeals division or a MABS type organisation which would advise dealing a repayment of tax which was underpaid.

Situation is. unknown to her, my sister's tax was completely messed up for years, she's doesn't have a clue about taxes and it came up when she changed jobs. She doesn't dispute that she has a tax deficit - the monthly repayments are eating into what was her household allowance and she is getting further into debt.

Having paid back repayments back for a year now, the deficit meant she's gotton into debt having borrowed from us and credit union to make ends meet. She's written to the tax office explaining her situation and asked if she could make half the payments in order. They've written a very curt letter saying outright no and it wouldn't support their system.

She's never been on benefits, in her 50s, lives alone unmarried (kids grown and gone). She has a mortgage, works full time and is a PAYE/PRSI employer paying tax at the lower rate. Getting the allowance for bins ( if thats even still there after Budget2012).

Is this the last word or is there any appeal or board she can contact about this. She will need to sell up in order to carry on at this level for the next 3 years.

Jesus Shaves

ktc wrote: »

Is there an appeals division or a MABS type organisation which would advise dealing a repayment of tax which was underpaid.

Situation is. unknown to her, my sister's tax was completely messed up for years, she's doesn't have a clue about taxes and it came up when she changed jobs. She doesn't dispute that she has a tax deficit - the monthly repayments are eating into what was her household allowance and she is getting further into debt.

Having paid back repayments back for a year now, the deficit meant she's gotton into debt having borrowed from us and credit union to make ends meet. She's written to the tax office explaining her situation and asked if she could make half the payments in order. They've written a very curt letter saying outright no and it wouldn't support their system.

She's never been on benefits, in her 50s, lives alone unmarried (kids grown and gone). She has a mortgage, works full time and is a PAYE/PRSI employer paying tax at the lower rate. Getting the allowance for bins ( if thats even still there after Budget2012).

Is this the last word or is there any appeal or board she can contact about this. She will need to sell up in order to carry on at this level for the next 3 years.

happened to me too, so i rang them and emailed them everyday until they sorted it out
They should let her make the repayments back over four years and it states this on the revenue website

ktc

thank you for the reply. Just to clarify, she is paying back over 4 years already and she's paid back her first year. Do you mean stretch out the remaining 3 over 4? as that would only make a marginal difference

Jesus Shaves

ktc wrote: »

thank you for the reply. Just to clarify, she is paying back over 4 years already and she's paid back her first year. Do you mean stretch out the remaining 3 over 4?

yeah, but she has to keep at them, they gave me an extra half year to pay, i was paying most of my wages in tax, MABS maybe able to help her, I've heard a lot of good things about them

relax carry on

ktc wrote: »

Is there an appeals division or a MABS type organisation which would advise dealing a repayment of tax which was underpaid.

Situation is. unknown to her, my sister's tax was completely messed up for years, she's doesn't have a clue about taxes and it came up when she changed jobs. She doesn't dispute that she has a tax deficit - the monthly repayments are eating into what was her household allowance and she is getting further into debt.

Having paid back repayments back for a year now, the deficit meant she's gotton into debt having borrowed from us and credit union to make ends meet. She's written to the tax office explaining her situation and asked if she could make half the payments in order. They've written a very curt letter saying outright no and it wouldn't support their system.

She's never been on benefits, in her 50s, lives alone unmarried (kids grown and gone). She has a mortgage, works full time and is a PAYE/PRSI employer paying tax at the lower rate. Getting the allowance for bins ( if thats even still there after Budget2012).

Is this the last word or is there any appeal or board she can contact about this. She will need to sell up in order to carry on at this level for the next 3 years.

Am assuming that the underpayment of tax covers 2006, 2007, 2008 and 2009 which was discovered in 2010 meaning 2011 is the first year for the underpayment to be collected by reducing her tax credits.
Have you looked over the underpayments themselves to ensure that they are correct? For example you say that she is single and the children are grown; in 2006 were any of those children dependant on her (still in full time education). If so she might have been able to claim the One Parent Family Credit for that year. Had she any medical expenses for those years? Union fees? Flat rate expenses?
Occasionally Revenue do make mistakes or not pick up on everything, so its no harm to look over the balancing statements from the underpayment years to ensure everything was claimed for.
If all is order and you agree with the amounts owed then I do not know how they could extend the reduction period of 4 years. Their computer systems do not allow significant PAYE underpayments to be extended beyond 4 years.

ktc

Thank you for the reply. Yes my brother has looked into it all for her and it's definately correct. She has diabities so doesn't apply for medical expenses or other involving her children. Even over 6/8 years would make a huge difference to her current situation. Struggling alone with a mortgage on a minimum wage is hard enough without having no negociation because of a computer system. I can't see her maintaining her health at this rate. Thank you everyone for replies, it seems worst fear is confirmed.

eyesquirm

You can claim back tax for four years in arrears. Revenue are not bound to this four years if you have arrears owing to them. She should apply for thelast four years, cl
aim any medical expenses if she has receipts, etc. Don't know if she's done this, but any money due back will go to repay what she owes.
Also, don't know how repayments are set up, or if this has been done already, but she can use her tax credits to help repay the arrears.
I owed them money and they adjusted my tax credits for four years.
Hope this helps.

relax carry on

ktc wrote: »

Thank you for the reply. Yes my brother has looked into it all for her and it's definately correct. She has diabities so doesn't apply for medical expenses or other involving her children. Even over 6/8 years would make a huge difference to her current situation. Struggling alone with a mortgage on a minimum wage is hard enough without having no negociation because of a computer system. I can't see her maintaining her health at this rate. Thank you everyone for replies, it seems worst fear is confirmed.

Ok final thing to do is write a letter to the HEO of the PAYE area outlining her case specifically how the reduction in her credits over the 4 years is impacting her, asking if part of the underpayment can be written off or somehow extended beyond the 4 years. If they still cannot do anything the link below is the last role of the dice as it takes quite a while to do.

http://www.revenue.ie/en/about/custservice/how-complain-revenue.html

Good luck.


Edit: by the way diabetes is an allowable medical expense, ie drugs + doctors visits. Also from Revenues guide to health expenses
"I am a diabetic and follow a special diet, can I claim tax relief on the cost of my food?
Yes. The cost of food products manufactured specifically for diabetics is an allowable expense for the purposes of a health expenses claim. A letter from a doctor confirming that the individual in respect of whom the claim is made is diabetic is acceptable. If receipts are requested, qualifying receipts are not confined to those from a chemist, doctor, etc. - receipts from shops, supermarkets, etc., in respect of food products manufactured specifically for diabetics are also acceptable"
If she has paid medical expenses for her children that is also allowable.

ktc

Many thanks all for the replies.

relax carry on thank you for that additional information about the dietary relief thatwill at least give her a few euro extra given her diet.

I've helped her apply for the complaint - here's hoping someone can show some compassion of her circumstances.

Thanks again.

KTC.