Tax Declaration Filing Deadline: Step-by-Step Guidelines

What Happens if the Tax Return is Not Filed?

When it comes to filing taxes, there are specific deadlines that must be respected to avoid penalties and interests.
In Italy, for most taxes, the self-assessment system applies, where the taxpayer calculates and pays the due tax.
But what if the tax return is not filed within the set deadlines?

Penalties for Late Filing

If the tax return is not submitted on time, the taxpayer faces penalties and interests in addition to the unpaid tax amount.
However, these obligations are not indefinite, as there are prescription periods to consider.

The deadline for filing tax returns in Italy is generally September 30th for the 730/2024 model and October 15th for the Individual Income Tax Return model.

Prescription of Tax Returns

After the deadline lapses, if the tax return is not filed, it is considered a failure to declare income.
The taxpayer can remedy this by submitting a late tax return within 90 days from the deadline, paying a penalty equal to 1/10 of the minimum imposed.

Furthermore, tax returns can still be filed after the 90-day period through a process called “ravvedimento operoso.”

Statute of Limitations for Tax Audits

To ensure legal certainty for taxpayers and tax authorities, there are prescription periods for tax audits.
If the tax return is submitted, any tax assessment notice must be issued by December 31st of the fifth year following the tax return submission.

If no tax return is filed, the assessment notice can be issued by December 31st of the seventh year after the tax return should have been submitted.

Changes in Tax Prescription

The 2015 reform (Law 218/2015) aimed to provide clarity on tax prescription terms by eliminating the extension of terms in case of criminal tax violations.

Previously, the statute of limitations for tax returns was four years after submission.
However, if criminal tax violations were reported, the limitation period would double.

Suspension and Extension of Prescription Periods

During the COVID-19 pandemic, certain deadlines, including those related to tax prescription, were suspended.
This measure resulted in an extension of the prescription deadlines to compensate for the suspension period.

For activities involving tax havens, longer prescription periods apply, with the possibility of doubling the assessment timeframes.

It’s essential to be aware of these regulations to ensure compliance with tax obligations and avoid potential penalties.