Fifth round of tax collection bills scrapped: is it really happening?

Is a Fifth Write-off of Tax Bills Really Happening?

After the confirmation of the extension to the fifth installment of the fourth write-off (postponed from July 31 to September 15), decree 110 dl August 5, 2024 paves the way for a reform in tax collection.
The cancellation of uncollectible debts and the halt to tax refunds for those in debt are just two of the novelties concerning the collection reform, which also includes the extension of installment plans for tax bills up to 120 months (gradually over the next few years).

No Fifth Write-off Programmed

The Ministry of Economy has dashed any hopes of a new tax amnesty: “There are no measures being studied to reopen the terms of the fourth write-off or to extend its scope of application to 2023.” In the short term, therefore, the only possibility to settle debts remains in the hands of those who have adhered to the fourth write-off and managed not to lose the benefit.

No new amnesty is on the horizon for now (even though hope remains for some possibility in 2025), also because the Ministry, of course, aims for a long-term reform of the Italian collection system.

Longer Installment Plans Instead of a New Write-off

The novelties introduced by the Collection Decree provide for the automatic discharge of tax bills with uncollectible debts after 5 years, a measure that will make interventions with periodic “debt settlement” practically useless from January 1, 2025.
The focus of the reform is to make the collection system in Italy more agile and streamlined, with longer installment plans playing a key role in this objective.

The extension up to 120 months will occur gradually, with installment plans of 84 months already possible from 2025.
In the 2027/2028 biennium, debts can be settled in 94 installments, which will increase to 108 in the 2029/2030 biennium.
Only starting from 2031, it will be possible to request a 120-installment plan, currently only available for extraordinary installment plans (where the installment exceeds 20% of the monthly income of the household).

Progress is being made to accommodate taxpayers with debts to the Treasury, even though a new write-off is not being implemented: longer installment plans and automatic discharge of debts that can no longer be collected.
However, these are long-term measures, and the State’s coffers are constantly in need of resources (which a new write-off would provide in a shorter timeframe).