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Verifying Income Tax returns

In many countries, the issues of taxation is a topical and very sensitive one. It delineates the populace into economic classes and also mirrors the landscape of resources, management and speed of development of the country. Taxes cannot be discussed without implying some critical themes around the subject of internally and externally generated revenues for the nation in question. It is therefore a typical topic that always engages the legislators of democratically governed nations.

Every corporate body, business organizations, entrepreneurs and adults and citizens in any country are expected to pay their taxes. However, the process of tax payment cannot be assumed to have been completed if the payee (whether individual or corporate has not verified the income tax.)

Traditionally, the verification of income tax is regarded as a declaration and attestation to the content of what was declared and disclosed as income and tax paid for the period in review.

It is very important that you verify your returns because failure to do so is almost equal to not filing it. There may be consequences you would have to face because of not verifying your returns as expected.

Again paying the actual taxes is important. In instances, where the payment has not been done then the returns so filed would be considered as not filed and you will have to pay some penalty. Every year, governments spend money in tax inspections and investigations aimed at recovering tax unpaid or wrongly paid.

Steps to Tax income verification

The first step towards verification of income tax starts with the understanding of the tax regime in the country you are paying the tax. This is because it will determine if you are actually paying correct amount and at the right time. 

The knowledge would guide you I the identification of your appropriate tax code, accurate or estimated tax to be paid (tax rate applicable to you or your company), your employment status, duration or tax year under review etc. It will also guide you to select the appropriate forms to fill. In the UK, example of PAYE forms include P45, P60, and the P11D. The tax codes that are applicable also matters.  You also need to be aware of the things you are expected to pay tax on and those categories of income you don’t need to pay tax on.

In most countries, the self-employed persons have different forms to fill while submitting details of their income tax returns. Details could require answers to your working, jobs status and/or pensions. Alternatively, you need to fill the Self-Assessment tax return with details of your personal tax account.

Second step involves the proper understanding of the documentation and instruments for submission of your tax details. Many individuals make mistakes while filling the income tax forms. This has legal implications especially in the event that the declared tax paid has discrepancies indicative or suggestive of having the intention to avoid paying complete taxes,

There are number of Agencies that can help in issues relating to Insolvency, income tax forms fillings checking appropriate income tax codes that is relevant to their clients. They may charge some fees for their services.

Additionally, government Agencies on Revenue and tax matters have platforms online for beneficial advice to citizens and corporate bodies on ways to pay their tax and verify the income tax returns.

Third step is to actually fill in the forms and submit. Then verify your submissions. In most countries today, a taxpayer can verify electronically when prompted by a response asking you to verify or physically when you sign the appropriate column as requested at the tax office or Tax Agent office.

 You have the option to e-verify your  returns at the time of uploading or after uploading. In the UK, you can also register for and sign your self assessment tax return online

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