Paying taxes is a legal obligation for all taxpayers. However, it is important to know that the tax authorities can check taxpayers’ tax returns for compliance. In this article, we’ll take a look at how tax returns are checked by the tax authorities, from the elements known in the taxpayer’s file to the various stages of the check in the event of inconsistency. We will also look at how the taxpayer can respond to requests from the tax authorities to clarify any errors and avoid an in-depth examination of his situation.
First inspection of tax returns
The first check carried out by the tax authorities consists of verifying that the taxpayer has filed the various returns on time, and that they contain no errors, deficiencies, inaccuracies, omissions or concealments. This control is carried out from the Administration’s office, based on known elements in the taxpayer’s file.
Tax authorities’ requests for information and justification
In the event of inconsistency, the tax authorities may send the taxpayer a simple request for information, or a request for clarification or justification. The taxpayer has 30 days in which to respond to the request, and 2 months in which to request clarification or justification, extendable on written request. If the response is deemed insufficient, the taxpayer is given a further 30 days’ notice to provide further details, and if no response is received, the tax authorities may impose an automatic tax.
The different stages of a tax audit
Depending on the taxpayer’s response, the tax authorities may decide that the taxpayer’s situation is compliant and take no further action, rectify the shortcomings identified by sending a rectification proposal, or carry out a more in-depth audit, after informing the taxpayer in advance.
Checking tax returns can be a source of stress for taxpayers. To avoid any inconvenience, it is important to respond to requests from the tax authorities and to clarify any errors. Altertax tax lawyers are on hand to advise you on the tax benefits of these schemes and help you respond to requests from the tax authorities. Please do not hesitate to contact us.