Posted Oct 3, 2022 2:44 PM
Unemployment, loss of income, divorce etc. These vagaries of life can plunge some taxpayers into a situation of great financial precariousness, to the point of no longer being able to pay their taxes, penalties or late interest relating thereto.
In this period of high inflation, household budgets are under pressure. For owners subject to property tax, it’s a cold shower. In principle, they have until October 17 to pay this local tax, which has risen sharply this year. What reserve some unpleasant surprises.
In certain specific cases, the administration can however show flexibility, and sometimes even go so far as to erase part of the debt. How can I obtain a payment deadline or even a free discount? What taxes are involved?
1. A request for a delay in the event of temporary difficulties
If you encounter temporary difficulties in paying your local taxes (property tax, and housing tax), or your income tax, you can exceptionally request a payment delay from the tax authorities.
What about real estate wealth tax? “It is possible to request and obtain a delay in the payment of all taxes, and of the IFI in particular. But, in all cases, the sums involved, the financial situation of the taxpayer, his behavior and his history are taken into account,” explains Philippe de Guyenro, associate tax lawyer at Eversheds Sutherland in Paris.
“From experience, the spread of payment can go up to 36 months for the IFI, rarely beyond,” adds the legal professional, part of whose clientele is made up of business leaders.
Whatever the tax concerned, it is better to act quickly. “It is preferable to submit your request as soon as you receive the tax notice”, recalls the Ministry of Finance in its educational letter Bercy Infos Particuliers of September 27. Do not wait for your financial situation to deteriorate further, otherwise you will be exposed to heavy late penalties.
You can do the process online by logging into your private space and accessing your secure messaging system. Select “Write to the administration/I have a problem concerning the payment of my tax/I have difficulty paying”.
It is also possible to submit your application at the counter of your public finance center or to send it by post.
It is recommended that you accompany your request with the questionnaire form 4805-SD and the corresponding supporting documents.
Requests for payment deadlines or tax rebates are made outside of any tax litigation. You are not disputing the tax due. It is therefore a simple gracious appeal subject to the goodwill of the tax authorities, which is determined “case by case” according to the personal situation of the taxpayer.
In practice, the administration will take into account periods of unemployment and other accidents of life (death of the spouse, separation, disability, illness, accumulation of arrears or reminders following a tax audit).
If the tax authorities have not responded within the two-month period, the application is considered rejected. This period is extended to four months if the complexity of the request justifies it. In the event of a positive response, a timetable will be put in place.
At the end of this first step, if you nevertheless consider that your request has not been dealt with satisfactorily, you can contact the departmental tax conciliator.
2. Impossibility to pay: get a tax rebate
In extreme situations, even by obtaining a delay, the debtor may find himself totally unable to pay. He can then file a free request to obtain a reduction, partial or total, of the tax. This must be accompanied by the same supporting documents as those required to request a delay.
The rebate request may relate to the following taxes:
· Income tax
Housing tax and contribution to public audiovisual (in the process of being abolished)
· Property tax
Penalties and interest for late payment of one of these taxes
“It is also possible to obtain free discounts on penalties following a tax audit”, specifies Philippe de Guyenro.
On the other hand, it is not possible to obtain a discount on registration fees (inheritance duties for example), nor on real estate wealth tax (IFI).
The tax administration will examine each file taking into account the real payment capacities of the taxpayer and the members of the household. It will also verify that you have not organized your insolvency to avoid paying tax.
“The chances of obtaining a free rebate or tax reduction are not negligible if your situation is justified. When it is justified, the administration can be attentive”, considers Philippe de Guyenro. The lawyer recommends taking the time to call the tax officials or meet with them and have a chat, especially when the sums involved are significant.
Last year, requests for ex gratia remittances accounted for 11% of all complaints received by the Revenue Authority, according to the report to parliament on ex gratia remittances and transactions for 2021, published by the Ministry of Finance. Economy.
Over the period, some 345,000 requests were processed by the services of the General Directorate of Public Finance (DGFiP). Year on year, their number continues to decrease significantly (-26.3% in 2021 after 38.5% in 2020). This decline reflects the sharp drop in the number of requests received (-20% in 2021).
For individual taxpayers, two main factors explain this sharp decline. The introduction of the withholding tax for income tax has smoothed the tax burden on households and limited the risk of payment incidents.
The gradual abolition of the housing tax, which began in 2018, has also de facto led to a drop in requests. interested in applying for free rebates, with requests relating to housing tax representing the preponderant share of free applications received and processed each year by the DGFiP”, indicates the annual report on rebates.
It is still too early to know whether the deterioration in the economic situation will have an impact on the number of requests to the administration in 2022, but it is still possible to take the lead.
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