Overpayment of personal income tax to the budget: features of the return and requirements

Tax liabilities often cause troubles to the population. The bulk of citizens and companies are faced with personal income tax. Sometimes according to the results of calculations there is an overpayment of personal income tax. What to do in this case? Is it possible to return excessively transferred funds? What overpayment operations are available for implementation? What is the deadline for submitting a tax request? Answers to all these questions will be presented below. If you carefully consider this topic, you will notice that the overpayment of taxes is not as scary as it seems.

Causes of occurrence

Why do overpayments on personal income tax arise? The reasons for this phenomenon may be different. For example:

• due to errors in filed declarations;
• due to a technical malfunction;
• with a large advance and small taxes;
• if an error occurred in calculating personal income tax.

Regardless of the reasons for the occurrence of overpayments, every citizen should know what he can do with extra money. Can they be returned somehow?

What to do with overpayment

Revealed overpayment for personal income tax? What to do in this case? Organizations, entrepreneurs and citizens can apply for a refund from the budget. In addition, you can set off excess funds against future taxes.

What does it mean? If overpayments on personal income tax are discovered, a citizen can:

• set off money against future personal income tax;
• set off against existing debts;
• return funds from the state budget.

What is the best way to act? This is each taxpayer decides on their own. In practice, most often the second version of events takes place when it comes to large amounts.

Circulation period

If an overpayment on personal income tax has been discovered, the citizen must be informed about this within 10 days. The tax agent notifies the taxpayer so that he can dispose of the excess cash.

As a rule, you can apply for overpayment refunds within 3 years. That is how much in Russia is the statute of limitations for filing a tax request. The countdown starts from the moment the extra amount is transferred to the state budget. But this is in ordinary cases.

Features of the calculation of the statute of limitations

Sometimes circumstances can affect the procedure for calculating the statute of limitations of appeals to tax authorities. Overpayment for personal income tax has the following features:

1. Overpayment occurred when making advance payments? In this case, the three-year period is counted from the moment of filing the declaration for the year.
2. Was the tax paid in installments? Then the overpayment is calculated for each payment separately. And the statute of limitations, too.

Is there a period in which a citizen can apply with a corresponding request on the corresponding date (day, month) of the last term of the year? If the day falls on a weekend, then the statute of limitations ends in the first working period after 3 years have passed since the formation of the overpayment / filing of the declaration.

Money back terms

Formed an overpayment of tax on personal income tax? Excessively transferred funds can, as has already been said, be either returned or set off in future taxes. This is a normal occurrence. How much money will be returned or credited?

To date, overpayment for personal income tax:

• returned to the citizen - within 30 days (month);
• re-read - no more than 10 days.

At the same time, a decision on what to do with excessively paid tax is necessary within 10 days from the moment the relevant state body receives a written statement from the taxpayer.The applicants are required to notify about their further actions no later than 5 days after the final consideration of the case.

Features for IE

Nevertheless, sometimes the return or re-transfer of excessively paid taxes to the state treasury does not occur immediately. The established deadlines can be regulated by the Federal Tax Service if it comes to the activities of individual entrepreneurs.

When the entrepreneur himself revealed that there was an overpayment of personal income tax, the following scenarios are possible:

• Organization of payment verification - no more than 15 days;
• implementation of a desk audit - 3 months.

After carrying out the relevant checks, the countdown of 10 days will begin, allotted for the adoption by the local body of the Federal Tax Service of the decision on what to do with excessively paid taxes.

Set-off Features

Is it possible to set off personal income tax as an overpayment? Yes. It is this scenario that most often takes place in practice. Usually, excessively paid money serves to reduce tax payments in a future tax period. This means that next year will have to transfer less money to the state.

It should be noted that the overpayment of personal income tax for future payments will be issued, but only within the limits of personal income tax. What does it mean?

Overpayments for taxes will be set off in the future, but only within the limits of taxes of the same type. There are federal payments, local and regional. So, it will not be possible to set off the overpayment of the transport tax, for example, as property taxes. And vice versa. The situation is similar with personal income tax. Therefore, we can say that the offset of the overpayment will be taken into account only in respect of taxes on personal income.

If an individual entrepreneur acts as a tax agent (lists personal income tax for employees), then it is impossible to reduce the entrepreneur’s taxes due to excessively paid personal income tax received from this or that employee.

Procedure

Is it possible to set off the overpayment on personal income tax in the account of upcoming payments? Yes, this has already been said. But if desired, a citizen can also return part of the money to himself.

The procedure for offsetting / returning personal income tax will be as follows:

1. Collect a specific package of documents. About it will be described below.
2. Write an application for the return of personal income tax or its re-calculation.
3. Submit a written request to the Federal Tax Service at the place of registration / registration. Attach to it all the papers prepared in advance.
4. Wait from the tax service for a written answer-decision.

In reality, everything is much simpler than it seems. Overpayment on personal income tax with proper preparation will either be transferred to the account of the citizen, or it will be taken into account in future taxes / current debts.

About Documents

Documents for the implementation of the task do not need so many. The thing is that usually the list of necessary securities is limited to a statement and an updated tax return. A similar list is needed when the tax agent has enough money to return the funds.

Otherwise, the taxpayer is required to:

• tax return;
• application for offset / return of personal income tax;
• extract from the tax register for personal income tax;
• certificates, payments and other papers confirming excessively paid tax.

All documents are provided in originals. Collect them is not difficult.

Reflection

And how to reflect the overpayment on personal income tax? In the statement of income (in the form of 2-personal income tax) to indicate this feature is simple. All overpayments here are marked as "Amounts of taxes excessively withheld by the tax agent."

In order to indicate an incorrectly paid tax, the taxpayer must file an updated tax return with the appropriate authority. In it, all recalculations are made, indicating the presence of overpayments.

Debt availability

There is another feature that must be remembered. Especially if the overpayment on personal income tax is made out as a refund to the taxpayer.The thing is that the money is transferred in full only in the absence of arrears of taxes and fines.

If a person / company has a debt, then excessively paid taxes first cover it, and the balance is transferred or credited to the citizen. To receive the full amount of overpaid funds in the presence of debts will not work.

Summary

Now it’s clear what can be done if there is an overpayment on personal income tax. Re-transfer or refund of money - it does not matter what operation is involved. The main thing is that the procedure for this or that case will be similar. The difference is only in writing a statement.

If you plan to restart, this is what you need to indicate in the appeal to the Federal Tax Service. When returning money from the budget, the application prescribes an account to which funds must be transferred.

In practice, employees of the Federal Tax Service most often willingly re-read the money and enthusiastically satisfy requests for the return of funds from the state budget. However, if a citizen is refused, the decision must be substantiated. The Federal Tax Service writes the reason for the refusal in its decision, which will be sent to the taxpayer.

Is it possible to set off overpayment on personal income tax in future payments? Yes. And to return? Also. A decision made by the tax authorities can be appealed in court. Fortunately, in practice, such circumstances are a rarity. Therefore, we can hope that the money will be sent in the direction chosen by the citizen.