Beware: Missing October 31 Tax Deadlines Could Lead to Heavy Fines and Imprisonment.

What Happens If You Miss the Tax Deadlines of October 31, 2024?

The end of October is a critical moment for taxpayers, accountants, and especially for VAT holders who are facing a significant tax rush.
Forgetting a deadline is possible, yet the consequences can be severe, potentially leading to imprisonment under specific conditions.

Tax Deadlines to Keep in Mind by October 31, 2024

October 31, 2024, is an important date; by this deadline, VAT holders can join the biennial preventive agreement.
Yet, that’s not the only obligation.
The income tax return must also be filed using the Income Tax Return Form, primarily utilized by VAT holders like merchants, artisans, and professionals.

Additionally, the IRAP (Regional Tax on Productive Activities) return must be submitted by this date.
Tax substitutes need to provide the 770/2024 model, summarizing the withheld amounts, covering employees, collaborators, and financial revenues.
Lastly, corporations must file the 2024 IRES model.

Complicating matters, accountants will begin a strike announced by four professional associations from October 30 to November 7, where they will refrain from filing the income tax, although other obligations will still be fulfilled.

Consequences of Missing the October 31 Tax Deadlines

If the tax return is not submitted within 90 days past the legal deadline, it is deemed omitted.
Continuing this oversight can lead to hefty fines and, in some cases, imprisonment.

The Sanzioni decree, legislative decree 87 of 2024, revised tax penalties effective September 1, 2024.
Previously, fines ranged from 120% to 240% of unpaid taxes, plus legal interest.
Now, starting from September 1, 2024, the penalty is set at 120% of unpaid taxes along with legal interest.

For instance, if a taxpayer omits their income tax declaration showing an owed amount of €3,000, they would need to pay the evaded tax, plus a 120% penalty and legal interest.

When You Risk Imprisonment for Missing Tax Deadlines

Failing to submit tax returns for income tax, IRES, or IRAP can even result in imprisonment under Article 5 of Legislative Decree 74 of 2000, which delineates offenses related to income tax and VAT.

This law stipulates imprisonment for 2 to 5 years for individuals who, aiming to evade taxes, fail to submit required declarations when the resulting tax evaded exceeds €50,000.

Moreover, if a taxpayer deliberately provides false information, harsher penalties apply, with imprisonment ranging from 4 to 8 years for tax evasion procedures.

Amending Your Mistake to Avoid Severe Penalties

To avoid imprisonment and heavy fines, taxpayers can opt for “ravvedimento operoso,” a process where individuals voluntarily correct their mistakes or missed deadlines, reducing their penalties in connection to the timing of such corrections.

By addressing these high-stake obligations timely, you can avoid the burden of colossal fines and potential legal issues.

For more information on penalties and remedies, visit Agenzia delle Entrate.