You can say goodbye to your debt: Automatic cancellation of tax bills arrives

It is possible to say goodbye to debt thanks to the automatic cancellation of tax bills: what you need to know about this tool.

Many taxpayers could see a real turnaround in their tax bills after the impact of a long-talked-about innovation that the government has included in its tax reform. Automatic cancellation will allow those with debts to be able to put them aside permanently, but this innovation will not be available to everyone.

The interest in having more time to pay and increasing the maximum number of installments that can be granted through the regular mechanism is certainly a great interest, but many taxpayers focus above all on – Automatic cancellation of some debtsThe latter may soon see a significant reduction in the amount owed, while others may see many tax bills cancelled: let’s explain.

Tax bills with automatic cancellation: who can benefit from them?

It is very important. Distinguish between tax debts, tax And those towards them Public bodies and tax billsThe distinction becomes essential when talking about tax bills with automatic cancellation because we understand the government’s goal with this innovation.

The revenue agency has to manage a very large number of tax invoices, and this piece represents a very serious problem. The staff must collect the invoices, send out the notifications, and use both cash and human resources. So this Cards are no longer redeemable for cash and will be automatically cancelled.Thus the enormous amount of work done by the Italian tax authorities will be reduced.

If the franchisee does not collect the tax bill for five years, with all available procedures, the latter will be recovered from the taxpayer’s tax record extract. For example, the debts of bankrupt, insolvent or deceased individuals without heirs can be cancelled. The tax authority will stop the big operating machine when it realizes that it cannot intervene in any way and will start the automatic scrapping procedure.

I However, the debts will not be cancelled immediately. Here the distinction between debt and tax reappears. There Tax Notice It is the action taken by the party to whom the debt is owed by assigning the tax office to collect it, while Debt is the tax that has been evaded. And it adds up with penalties, interest, and collection fees. In short, the revenue collection agency will cancel the tax bill, return the debt to the original entity, and it will then be the entity that has to decide what to do with those credits.