Revenue write to almost 70k Irish pensioners over incorrect tax payments amid fears envelope ‘will cause lot of concern'

The Irish Sun

10 hours ago

Revenue is clamping down on pensioners who have owed tax since 2022
TAX TIME Revenue write to almost 70k Irish pensioners over incorrect tax payments amid fears envelope 'will cause lot of concern'
REVENUE commissioners have written to almost 70,000 pensioners over concerns relating to incorrect tax payments.
These retirees make up a large portion of the 260,000 individuals who Revenue claims may have been incorrectly taxed for the year 2022.
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The Revenue commission says this campaign is not aimed explicitly at pensioners
Credit: Getty Images - Getty
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According to Revenue, over 260,000 taxpayers may have been incorrectly taxed for the year 2022
Credit: Getty Images - Getty
Despite this action, the Revenue Commission says it has not launched a campaign aimed explicitly at pensioners.
The letters outline steps taxpayers should take to file a correct end-of-year statement and income tax return.
According to RTE, the correspondence says that the vast majority of people, including pensioners, pay the right amount of tax automatically.
However, other income sources, such as "a Department of Social Protection payment or private income, Revenue may need to adjust tax credits to reflect that".
Notably, social welfare payments are not taxed before they are paid out; as a result, many recipients owe tax on these payments without knowing it.
For example, if a person receives a social welfare payment, such as the State pension, but has another source of income, such as a part-time job or private pension, they may owe tax on that payment.
Revenue says pensioners whose sole income comes from the state pension will not be effected.
Despite the presence of these letters, Revenue says that "the letters are not a demand, but part of our regular efforts to help people check if they have paid the right amount of tax, or if they are due a refund".
And that where there is underpayment taxpayers will not be required to make an immediate payment.
Instead, any owed funds "will be collected through a reduction of tax credits in future years".
"MORE HUMANE APPROACH"
CEO of Irish Rural Link Seamus Boland said these Revenue letters will cause much concern.
Referencing the time revenue sent letters sent to around 115,000 pensioners in 2012, he said: "I think at that stage there was an apology made for the way people were being treated.
"Hopefully this letter is not as brutal as that one was, I'm hoping it's a little softer in terms of people who have overpaid and there will be a category of people who have underpaid as well."
He added: "there's lots of pensioners in this category who are going to be affected one way or the other."
But that he hopes the commission might adopt a "more humane approach" this time.
Revenue has yet to disclose the sums of money involved.