Inland Revenue is in the process of making some changes we thought you should know about. It is important you read about these changes as they will help ensure you file returns and make payments on time.
Removal of Invercargill drop-box
Previously, there was a drop-box on the street outside Inland Revenue’s Invercargill office for taxpayers to drop their payments and returns into 24 hours per day, 7 days a week. This was convenient for taxpayers who do not file returns or make payments electronically, and who do not want to rely on the postal system to get things to the Inland Revenue by the due date.
From 31 August 2017, the drop-box has been moved into Inland Revenue’s reception area and will only be available from Monday to Friday between the hours of 10:30am and 4pm. Inland Revenue has advised the change was due to security reasons.
Due to the reduced availability of the drop-box, it is an opportune time for those who manually file returns or make payments to start doing so electronically.
No bank account number, no refund
Inland Revenue has indicated to us that in the very near future, any refunds due to taxpayers will only be paid by direct credit. Therefore, if you are due a refund and Inland Revenue does not have a bank account number on record, you will need to ring Inland Revenue with a bank account number before they will give you the refund. Only in very exceptional circumstances will a refund be paid by way of cheque.
Inland Revenue has provided us with a list of bank account numbers on record for our clients. Over the next few months we will contact you to confirm the bank account number Inland Revenue has on file for you, or to obtain a bank account number for your refunds to be paid into. This will ensure there is no delay in Inland Revenue paying any refunds owing to you.
Overdue payment and return letters
Over the last six months, we have seen an increase in the number of letters Inland Revenue has sent to clients advising that a return or payment has not been received by the due date. In the majority of cases, the return or payment has been received, but not processed, by Inland Revenue by the due date. Inland Revenue’s IT systems have been “too efficient” in these instances and sent out overdue letters. This has resulted in time being wasted by our clients and us.
This issue, generally, occurs when a return is filed or payment made, manually, close to the due date.
Inland Revenue has advised that they are changing their systems to ensure letters are not generated when GST returns and payments are filed manually. An indicator is going to be put in the system at the time a return or payment has been received by Inland Revenue, even if it has not been processed.
Time to start using myIR?
It is evident from the above changes that Inland Revenue is wanting taxpayers to move to electronic means when making payments and filing returns. If you have a myIR account with Inland Revenue, it will allow you to file some returns electronically and setup direct debits for GST payments.
If you would like assistance in setting up a myIR account please call us.