Recently, a new measure has been announced that can help you with your tax duties. It is now possible to split and defer debts with the Tax Authorities up to 50,000 euros, which is a great opportunity for those who need more time to pay their taxes. We explain everything you need to know about this measure and how to apply for it. Keep reading and don’t miss any details!
What is the measure to install and defer debts with the Internal Revenue Service about?
From April 15 of this year, self-employed persons and companies will be able to pay in installments or defer debts with the Tax Authorities up to a limit of 50,000 euros. This without having to present guarantees or sureties to the Treasury, as allowed by the Ministry of Finance and Public Function from that day.
The entry into force of the ministerial order coincided with this date and will allow the deferral or fractionation of debts with the Tax Authorities, including the payment of taxes. All without the need to give explanations, and with a limit of up to 50,000 euros. In addition, the order will repeal another one approved last October 9, which established an exempt limit of 30,000 euros.
The government has deemed it necessary to update this amount due to its obsolescence in view of the evolution of the economic context. The domestic economy and different sectors of activity have suffered enormous difficulties due to the supply shock and the increase in prices.
It is important to remember that prior to the current figure of €30,000, self-employed persons could defer debts of up to €18,000 without having to present collateral or guarantees. Therefore, this is the second revision to be made.
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Conditions for payment in installments and deferral of tax debts
If you wish to defer or defer a tax debt, there are certain conditions and requirements that must be met. Here are the main ones:
Benefits of paying in installments and deferring debts with the tax authorities
Deferring or deferring debts with the tax authorities can have a series of benefits and advantages for companies or individuals who are in a difficult financial situation. What positive results can you achieve? We share with you the most important ones:
Reduction of financial burden
By paying in installments or deferring debts to the IRS, you can reduce monthly payments and ease the financial burden. This allows for better planning and helps keep your business or personal finances afloat.
Avoid penalties or embargoes
If you do not pay a debt to the IRS on time, you may incur penalties or garnishments, which could worsen your financial situation.
By entering into a payment agreement with the Internal Revenue Service, more favorable terms and conditions can be established for the debtor, which facilitates compliance with the tax obligation. In addition, the accumulation of interest and penalties can be avoided, and more comfortable installments can be negotiated for the payer.
By paying in installments or deferring debts with the tax authorities, you improve your liquidity and have more resources available to invest in your business or to meet other urgent payments.
By deferring or deferring debts with the tax authorities, you can negotiate a term that is more in line with your financial possibilities. This allows greater flexibility and adaptation to the current financial situation.
Maintaining a good relationship with the tax authorities
By paying in installments or deferring debts with the tax authorities, you show a responsible and committed attitude towards the payment of tax obligations. This can be beneficial in the future to maintain a good relationship with the Treasury and avoid major problems.
It is important to bear in mind that, although the fractionation or deferral of debts with the tax authorities may have advantages, it also has tax and financial implications in the long term, so it is advisable to seek advice before making a decision.
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5 tips for requesting payment in installments and deferment of debts with the tax authorities
If you find yourself in the situation of having to installment or defer debts with the IRS, it is important to follow certain practical tips to maximize your chances of success and avoid problems in the process. Some of these tips include:
Prepare the necessary documentation
Before requesting the application to defer or defer debts with the Tax Authorities, make sure you have all the necessary documentation in order. This may include the form, the report explaining the economic situation of the company or individual, the necessary accounting and tax documents, along with any other information that may be relevant to the procedure.
Be realistic in the conditions you request
While you can negotiate the terms and conditions of the installment or deferment, it is important to be realistic and not ask for more than you can afford. If you ask for terms that are too long or conditions that are beyond your means, you run the risk of having your request denied.
Avoid common mistakes
There are certain common mistakes that can be avoided to increase the chances of success when deferring or deferring debts with the tax authorities. These include errors in documentation, delays in filing the application and lack of communication with the administration.
Seek professional advice
If you are not sure how to defer or defer debts with the tax authorities, it is advisable to seek professional advice. A tax advisor or accountant can help you prepare the necessary documentation, as well as negotiate the most favorable terms and conditions for you.
Maintain good communication with management
It is important to maintain good communication with the administration throughout the application and installment or deferment process. If there are changes in your financial situation or in your ability to comply with the agreed terms and conditions, you should inform the administration immediately.
The new measure of fractionating and deferring debts with Hacienda is an excellent option for those who need more time to pay their taxes. Now you can ease the financial burden and get on with your business.
However, it is important that you understand the requirements and conditions necessary to apply for it, as well as to avoid making mistakes that may generate additional penalties and surcharges.
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In TAS Consultancy, we have an expert tax service that will guide you through the entire process to make the most of these benefits of fractionating and deferring debts with the Treasury. Do not hesitate to contact us and make sure you meet your tax obligations effectively and without complications!