Your return is being checked

The State Agency of Tax Administration had six months to order the refunds of the 2020 income tax returns in favor of taxpayers: that is, it should do so before December 31, 2021 .

Once that deadline has passed, if you still have not been refunded the money (and the delay is not due to causes attributable to the taxpayer), you are entitled to be paid default interest by the Treasury from December 31 until the date on which the refund is ordered. You do not need to claim it: they should automatically increase what they owe with the amount of late payment interest, which for 2022 is 3.75%.

What to do if you do not receive a refund of your income tax?

The easiest way is to check the status of the application from the official portal of the Tax Agency. From the AEAT website, in the Renta 2020 section, you can obtain the information in “Declarations already filed” and “How to consult a return”. The system will redirect to Renta WEB and will ask for identification.

What is the interest paid by the Internal Revenue Service on late payments?

The fine from the Tax Authorities for keeping cash at home

In this way and if the delay on the part of the Tax Agency exceeds the term of 6 months from the end of the campaign, the payment to be made must add interest for late payment, which is 3.75%.

How long is it taking to pay back Hacienda 2021?

How long does it take for the Treasury to pay the Income Tax refund? The Tax Agency points out that the maximum term to return the money is six months from the date on which the campaign ends, June 30, so the term to collect the refund could be extended until December 30.

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The most likely case is that the return has not yet been processed without the need for it to be going through an inspection or a particular review. However, in the case of self-employed income tax returns, the Tax Agency usually analyzes possible irregularities in the reporting of income or expenses or performs checks when these expenses do not correspond to the corresponding professional activity.

“Your return is being processed”, “Your return is being checked” or “Your return has been processed by the Tax Management bodies” are the most common messages that the taxpayer may encounter.

And depending on the final processing of the application, there may be different cases. On the one hand, the result may end up being to pay and not to return. In this case, there may or may not be a penalty for the taxpayer depending on the type of error that generated this discrepancy in the result.

As Enrique García, CEO of TaxDown, explains, “although it is not usual for the Tax Authorities to delay, sometimes it happens. In fact, the Personal Income Tax law itself provides for this delay in its article 103, which explains that the payment will be made “within six months following the end of the period established for filing the return”. That is to say, January 1, 2021. And in the event that the tax return has been filed after the deadline, these six months will be computed from the date of filing”.

How can I know when I will be reimbursed by the IRS?

How long does it usually take for the Treasury to return the money? Normally, if a refund is issued and everything is correct, it does not take much longer than one month, but the rule states that the Administration has six months from the end of the period for filing the tax returns to issue the refunds.

How much is the interest for late payment?

As a general rule, the percentage of interest for late payment is the legal interest rate plus 25%, although on occasions it has exceeded the legal interest rate by more than 25%. The default interest for the year 2022 is 3.75%.

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How long does it take to return the 2020 rent?

The Treasury has a term of six months to pay the amount appropriated to taxpayers, counting from the last day to file the tax return. The income tax return campaign is coming to an end.

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Check the status of the application at the Tax AgencyThe easiest way is to check the status of the application from the official portal of the Tax Agency. From the AEAT website, in the Renta 2020 section, you can obtain the information in “Declarations already filed” and “How to consult a return”. The system will redirect to Renta WEB and will ask for identification. The answer may be that the return is being processed, that it is being checked or that it has been processed.

Even if the return has been sent with a request for a refund, it is possible that the result will end up being payable if the Tax Agency carries out a check. And if there were errors in the presentation, penalties may be imposed.

Interests for breach of the deadlinesIf the Treasury has breached the dates there is right to perceive interests of delay. They will be 3.75% per annum from the date on which the six-month period expires until the date on which payment is ordered, explains TaxDown, as stated in the General State Budget Law in its additional provision 49.

Why does it take so long for the Treasury to refund?

The most common causes are additional data checks or the existence of tax debts (e.g. traffic fines, liens, municipal debts, etc.). If the tax authorities exceed this period, you will have to pay interest for late payment.

When does Hacienda 2021 pay?

Although it is not usual for the Treasury to delay, sometimes, it happens. In fact, the IRPF law itself provides for such delay. In its article 103, it explains that the income “shall be made within six months following the end of the term established -this for the filing of the return”. That is, January 1, 2021.

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When does the Treasury pay the 2021 income tax refund?

The Tax Agency can make the payment within six months, that is, before the end of the current year 2021, although it is very common for the payment to be made within the month following the filing of the Personal Income Tax return.

Until when hacienda returns the money

From the web section of the Tax Agency Renta 2020. Moving forward with you, you can check the status of your return by entering your file through the option “Processing services draft / return (Renta WEB)”.

Normally, if the return is returned and everything is correct, it will not take much longer than one month, but the rule states that the Administration has six months from the end of the deadline for filing the returns to make the refunds.

If the result of the Income tax return is a refund and it is still pending due to incidents that entail a reduction of the refund, the Tax Agency recommends that the file be accessed to check if it is within the system called “VERIFICA”, which allows it to speed up the refund.

Taxpayers with pending refunds that meet the requirements of the system will receive a message on the screen informing them of the possibility of speeding up the verification and subsequent refund.

By Rachel Robison

Rachel Robison is a blogger who collects information on court filings and notices.