Upon receiving the settlement note, did you realize that the tax authorities made a mistake, for example, considered a wrong amount of withholding tax? You can ask for the total or partial annulment of your IRS liquidation. According to DECO, you have 150 days after receiving notification of settlement to file a gracious claim. It is the simplest and cheapest way to correct errors that are the responsibility of the Tax Administration, especially if you do it through the Finance Portal (you need the password). If you are not a fan of online, you will have to go to your finance service.
Gracious complaint on the Finance Portal
In the Finance Portal, select the subject of the complaint, such as wrong withholding taxes, and choose the year to which they relate. The system presents you with the list of your holds and records the one you want to complain about. In the field for the complaint, indicate the reason, such as poorly classified income or wrong amounts of withholding tax.
You do not need a lawyer (agent) unless the claim is made on your behalf by someone else. In that case, hire a lawyer or solicitor and fill in the details of the agent on the form. Notifications will be sent to him, but in some cases, both can receive them: for example, if the taxpayer is asked to appear.
Check the status of the complaint
You can consult the data and the status of the complaint on the Finance Portal: case number, date of establishment, tax in question, code of the Finance service and situation on a certain date. The process can be found in several states:
- extinction by deferral – process ended and the taxpayer was given a reason;
- extinction by partial grant – process ended and the taxpayer was given a partial reason;
- dismissal due to rejection – process ended and the taxpayer was not given a reason.
In the first two cases, the Treasury will make the necessary “adjustments”. In the latter, if the taxpayer is certain that he is right, he can proceed to the hierarchical appeal and to the judicial challenge.
Hierarchical appeal and judicial challenge
If you are convinced that you are right, direct the hierarchical appeal to the Minister of Finance, within 30 days of the decision on the gracious complaint. But this does not suspend the previous decision: if you have a payment missing, you will have to settle it anyway. The taxpayer can sign the petition for a hierarchical appeal, but we advise you to ask for help from a lawyer, due to the complexity of the process and its deadlines.
The hierarchical appeal is delivered to the Finance department and decided within a maximum period of 60 days. At the same time, proceed to the tax court with the judicial challenge. If you are right in the hierarchical appeal, the challenge ends automatically.
It cannot wait for the decision of the hierarchical appeal to request the judicial challenge because the deadline for these two actions is almost simultaneous. If you are not given a reason for your gracious complaint, you have three months after the decision to challenge. In parallel, the hierarchical appeal period also runs: as it is 30 days from the date on which you are notified of the decision of the gracious complaint, if you wait for the result of the hierarchical appeal, the period for the judicial challenge will have passed.
These deadlines are counted continuously, not interrupting on Saturdays, Sundays and holidays.