What Happens if the Tax Representative Changes Before the Refund?

What Happens When the Tax Substitute Changes in the 730/2024 Declaration?

When filling out the 730/2024 tax return, one particular aspect that requires careful attention is indicating the tax substitute who will handle the tax adjustment.
But what happens if the tax substitute changes before the refund, but after submitting the 730/2024 form? Is there a risk of losing the entitled amounts if you change jobs or retire?

Scenarios of Tax Substitute Changes During Tax Return Submission

The change of the tax substitute during the months of the income tax return submission can lead to two scenarios: a change of the substitute after sending the 730 form (where the old tax substitute was indicated), or a change that occurs around the time of the income tax return submission.

In these cases, what issues could arise for the taxpayer, and how can one ensure to receive the due refund? Let’s delve into how to proceed.

Who Is the Tax Substitute?

The tax substitute is the public or private entity tasked with replacing the taxpayer in the dealings with the tax authorities.
For wage earners, the tax substitute is usually the employer.
For retirees, it is typically the pension fund that disburses the pension (usually INPS for most retirees).

In domestic work, despite being an employee-employer relationship, the employer does not act as the tax substitute, and it’s the worker’s responsibility to settle their tax affairs with the authorities.

The role of the tax substitute in the 730 tax return process is crucial since they must fulfill the tax obligations on behalf of another party, their employee.

Indicating the tax substitute is only required when filing the tax return with the 730 form.
If choosing to use the Redditi Pf model, the taxpayer must handle their tax obligations directly by paying with F24 or, in case of a refund, receiving it directly from the Revenue Agency.

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Changing Tax Substitute After Submitting the 730/2024 Form

It is crucial to remember that the tax substitute indicated in the 730/2024 form must be the one currently acting as the tax substitute at the time of submission, even if a change is anticipated post-submission.

If the tax substitute changes after submitting the form, one only needs to file a corrective 730 (type 2) form to inform the tax authorities of the new tax substitute for handling fiscal obligations.
This can be done without changing the initial declaration, just by adding the new tax substitute.

This type of corrective 730 cannot be filed if the form was submitted without a tax substitute or if a corrective form was already submitted marking code 1 or 3.

In this scenario, it is essential for the previously indicated tax substitute to inform the Revenue Agency of the denial.
Failure to do so implies that the indicated tax substitute will still be responsible for the tax adjustment, even if the taxpayer is no longer their employee.

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Changing Tax Substitute Before Receiving the Refund

It may occur that a wage earner files their tax return in June or July, knowing they will retire in September, causing their tax substitute to change during or before the refund process.
How should one act in this situation? Which tax substitute should be indicated?

The rule remains the same as mentioned earlier: the tax substitute to be indicated is always the one in place at the time of filing the tax return.
One cannot choose to name INPS as the tax substitute in July if they will only take over in September.
The options in this case are:

– File the tax return directly after retirement, naming INPS as the tax substitute.
– Submit the tax return promptly with the employer as the tax substitute and then file a corrective 730 in September to communicate the new tax substitute (INPS).

Filing the 730 Without a Tax Substitute

Starting this year, every taxpayer can opt to file the 730 without a tax substitute (previously only available to those without a substitute).
This choice allows for receiving any refund directly from the Revenue Agency by the year-end and paying the due taxes using F24 within the set deadlines.

If there’s a concern about a potential tax substitute change, a viable option that eliminates the need for a corrective 730 may be to indicate on the form’s cover that it is filed without a tax substitute.