Forgetting to submit the income tax return within the deadline set by the Tax Agency is a situation more common than it seems. However, the consequences are not the same for all taxpayers. It is not the same to submit the return voluntarily a few days after the campaign closes than to do so when the Tax Agency has already initiated a procedure, nor is it the same whether the result is to pay or to receive a refund.
Although the campaign has ended, the return can still be submitted, and doing it as soon as possible usually reduces the economic consequences compared to waiting for the Tax Agency to detect the non-compliance.
Submitting the return after the deadline is still possible
Once the income tax campaign has ended, the taxpayer can continue to submit their return through the channels enabled by the Tax Agency. The regulations allow for the situation to be regularized even if the deadline has expired. The difference lies in the economic consequences, which will depend on whether the submission is made voluntarily or after a requirement from the Tax Agency.
In general terms, submitting the return as soon as possible is usually more beneficial, as it prevents the Administration from initiating a more burdensome sanctioning procedure.
If the return results in a payment
When the result of the return is to pay and the taxpayer submits the self-assessment voluntarily once the deadline has ended, the Tax Agency applies the surcharges for late submission provided for in the General Tax Law. Currently, the surcharge is 1% during the first month of delay, increasing by an additional 1% for each full month that passes until reaching twelve months.
If the delay exceeds one year, the surcharge becomes 15%, to which the corresponding late payment interest is added from that moment. These surcharges replace the penalties as long as the submission occurs before the Tax Agency requires the taxpayer.
What happens if the Tax Agency detects that you have not submitted the return
The situation changes when the Tax Agency discovers the lack of submission before the taxpayer voluntarily regularizes their situation. In that case, in addition to the payment of any existing tax debt and the corresponding interest, the Treasury can impose a penalty, the amount of which will depend on the circumstances of the case and the severity of the infringement according to the General Tax Law.
For this reason, tax experts recommend not to wait to receive a notification when it is detected that the declaration was not submitted within the deadline.
If the declaration results in a refund
One of the most common mistakes is to think that if the declaration results in a refund, nothing happens by submitting it late.
The reality is different. The taxpayer does not lose the right to receive the refund, as long as they request it within the statute of limitations provided by tax regulations. However, if they were required to submit the declaration, the late submission may lead to an administrative penalty, even if the Treasury is the one that must refund money.
Consequently, the fact that the declaration results in a refund does not automatically exempt from responsibility for having missed the legal deadline.
Do you lose the interest or the refund?
Submitting the declaration late does not mean automatically losing the right to the refund when it is due. Once the declaration is submitted, the Tax Agency will process the case and check if it is appropriate to make the payment.
If the refund is appropriate, the taxpayer will still have the right to collect it, without prejudice to the consequences arising from having submitted the declaration outside the voluntary period.
Regularizing as soon as possible reduces the consequences
The difference between voluntarily regularizing and waiting for the Tax Agency to act can be decisive from an economic point of view.
For this reason, tax advisors recommend submitting the declaration as soon as the error is detected, as doing so before any requirement allows, in the cases provided by law, to benefit from the surcharge regime and avoid harsher penalties.
In short, submitting the income tax return late does not prevent compliance with the tax obligation, but it may involve additional costs. The amount will depend on the result of the return, the time elapsed, and whether the initiative comes from the taxpayer or the Tax Agency.