Robert Troy (Longford-Westmeath, Fianna Fail)
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225. To ask the Minister for Finance if he is aware that Revenue is currently seeking tax returns, covering a number of years from retired PAYE workers (details supplied). [41513/24]

Jack Chambers (Dublin West, Fianna Fail)
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I understand that the Deputy’s question relates to cases where retired PAYE workers, who have recently sought a Statement of Liability (SOL) from Revenue, have been asked by Revenue to submit tax returns to finalise their tax position.

I am advised by Revenue that a Preliminary End of Year Statement (PEOYS) is made available on myAccount to all PAYE employees, including retired individuals in receipt of PAYE sources of income. The PEOYS sets out an individual’s provisional tax position based on information available on Revenue records. It will show whether that individual has paid the correct amount of Income Tax and Universal Social Charge (USC) for the year.

However, an individual’s final tax position can only be determined when they submit a tax return at the end of the year and claim any additional credits or reliefs that may be due or declare any additional income they may have.

Since 2022, Revenue has written to approximately 700,000 taxpayers whose PEOYS indicated that they have either underpaid or overpaid tax over a number of years. The correspondence outlines the steps which taxpayers should take to review their PEOYS and file an income tax return. An income tax return can be filed through myAccount, which is Revenue’s quick, easy, and free online platform. For taxpayers that are unable to use myAccount , a paper income tax return can be requested directly from Revenue by phoning their 24-hour automated Forms Ordering Service on 01-7383675.

Upon completion of a return, Revenue will issue a SOL showing the final tax position for that year. Where the SOL indicates an overpayment, any refund of tax will be paid into the individual’s bank account on record. Where the SOL indicates there is an underpayment, taxpayers are not required to make any immediate payment. Instead, any underpayment will be collected through a reduction of tax credits in future years. For example, for an underpayment of €200, this equates to a collection of €1 extra of tax per week over a four-year period. Taxpayers can, however, choose to make a full or partial payment if they wish.

Any individual who experiences hardship because of a tax liability can contact Revenue and agree a repayment solution that meets their individual circumstances.

Finally, I should note that Revenue have advised that, should the Deputy wish to contact Revenue directly on behalf of any taxpayer, he can do so via the Oireachtas Helpline at 01-8589999.