By this time of year, many taxpayers have already received IRS refunds into their bank account. However, instead of receiving, there are those who have to pay this tax, for not having made sufficient withholdings over the previous year. Payment of the IRS must be made by August 31 in Finance, according to the deadlines provided in the IRS Code. But to try to ease the burden that this payment can mean in the taxpayer’s pocket, there is a solution: the installment payment. With the entry into force of the State Budget for 2016, the IRS installment payment standards have changed. Know the changes.

1. What is the new maximum amount for payment in installments?

1. What is the new maximum amount for payment in installments?

Until the entry into force of the State Budget for 2016, only IRS debts of less than 2,500 euros could be paid for benefits without any guarantee, provided that before the initiation of the executive process (attachment) and provided that the applicant was not a debtor to the Treasury, as you can read here. Article 184 of this year’s State Budget has changed the rules and doubled this amount, passing the maximum amount of debt that can be paid to benefits for 5 thousand euros.

2. Has the number of benefits also changed?

2. Has the number of benefits also changed?

Yes. In addition to the doubled amount, the number of benefits increased from six months to 12 months, in cases where a guarantee is not required from the claimant. So if Finances validate the IRS payment request in a phased manner, take note of how the total tax is divided by the number of installments.

IRS debt amount (euros) Number of installments
From 204 to 350 euros 2
From 351 to 500 euros 3
From 501 to 650 euros 4
From 651 to 800 euros 5
From 801 to 950 euros 6
From 951 to 1100 euros 7
From 1101 to 1250 euros 8
From 1251 to 1400 euros 9
From 1401 to 1550 euros 10
From 1551 to 1700 euros 11
From 1701 to 5000 euros 12
Source: Tax and Customs Authority  

3. Is it possible to extend the number of benefits?

3. Is it possible to extend the number of benefits?

According to the guide provided by the Tax Authority, entitled “How to pay your taxes, customs and other taxes”, the number of benefits can go up to 36 months, as was already established. But in such cases, the debtor is obliged to give a suitable guarantee, namely, bank guarantee, surety bond or guarantee made by legally authorized insurance institutions or mortgage.

4. How to make the payment?

4. How to make the payment?

The payment of the benefits must be made until the end of each month, in cash, check, debit to account, bank transfer or postal order in the services of Finance (collections sections), CTT counters or through the ATM. To the value of each installment, interest on arrears will be added on the respective amount from the time of the period for voluntary payment until the month of the respective payment. It is enough to fail to pay a benefit in order to initiate the tax enforcement process.

How to ask Finance to make payment in installments?

Requests for payment in installments are preferably submitted electronically or at the tax office of the area where the taxpayer is domiciled for tax purposes, up to 15 days after the deadline for voluntary payment and must contain the identification of the applicant and the nature of the debt. Within 15 days of receipt, applications shall be accepted by the Head of the Finance Department after verification that the applicant is not liable for any other taxes.

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