Underpayment of income tax

[hlm]

I requested balancing statement at end of 2006, due some tax back for medical expenses, bins taxes etc. I had changed employment during the year, and had been out of work for a little while so I wasn't clear on my tax situation. Got a p21 statement very quickly showing a large overpayment of tax on my part and a cheque attaching. I cross checked some of the maths, all looked ok and gratefully took and accepted it. Today got an amended p21 statement showing that I had underpaid tax by almost the full amount refunded to me above and looking for a cheque in settlement. I don't have the money to repay it (long since spent). I genuinely thought it was mine, never occurred to me that they would pay the money out unless the tax office were sure too. What are my next steps. Will revenue accept a payment over a period of time, will they accept some sort of reduced settlement. I do understand errors can happen, but no apology, explanation, no meet you half way on this, nothing. Anybody had this happen to them before?

 

[woods]

Ask them to check again. Maybe this one was the mistake.
You said that you did the maths on the last one and it looked OK.

 

[Slash]

If you were a prominent member of the Fianna Fail party, I am sure they could arrange a meeting with the Chairman of the Revenue Commissioners, who would arrange to have the "liability reduced to nil on appeal".

Seriously, though, ring the Revenue and ask for a full explanation.

It is likely they will accept payment by instalments if you explain your circumstances. If in PAYE employment, they could adjust your tax credits to collect the amount over a period of time. Don't despair; they are quite receptive (most of the time).

 

[CharlieC]

Have received 2 forms from revenue last week within a number of days,
one looking for 6k (incorrect)and and another with a cheque for 400 euro (also incorrect).
They are not immune to mistakes
Satisfy yourself that your figures are correct using online calculators firstly before getting back to them

 

[Guest127]

Have received 2 forms from revenue last week within a number of days,
one looking for 6k (incorrect)and and another with a cheque for 400 euro (also incorrect).
They are not immune to mistakes

you can say that again. filled in 3 years tax forms in January. in feby received a rebate for 2004 €50 and p21's for 2005 and 2006 with small 'underpayments' on them. went into tax office about this and few weeks later received a further €720. still incorrect so when back into tax office and got another €260. still not right so back again and this time got another €130. calling it off now as its as close to no difference correct this time.
will check myself into a home for the bewildered before I fill in another tax form.