Goodbye debts: The IRS confirms it will look the other way with this

The Tax Agency, commonly known as Hacienda, is the entity responsible for collecting taxes and managing public finances in Spain. Although its role is to ensure that all taxpayers fulfill their tax obligations, there are situations in which Hacienda decides not to claim certain debts due to their small amount.

Hacienda Makes It Clear: It Will Forgive Debts That Don't Exceed This Amount

Since June 2022, Hacienda has established that it will not pursue debts that are less than 3 euros. This decision is based on the fact that the administrative cost of managing and collecting these small amounts exceeds the economic benefit that would be obtained.

Therefore, if a taxpayer has a debt with Hacienda that doesn't exceed 3 euros, it will be automatically canceled. It will be written off in the accounting of the Tax Agency. The taxpayer doesn't need to take any action or request to benefit from this measure; the forgiveness is applied automatically.

Reasons for This Measure by Hacienda

The main reason why Hacienda decides to forgive debts under 3 euros is economic. The process of notification, follow-up, and collection of these small amounts involves a resource expenditure that doesn't compensate for the income that would be obtained.

This way, the Tax Agency optimizes its efforts and resources. Focusing on larger debts that do represent a significant impact on public coffers.

What to Do if You Have a Debt with the Tax Agency?

If you have a debt with Hacienda, it is important to act promptly to avoid surcharges and penalties. In the case of debts under 3 euros, as mentioned, no action is necessary since they will be automatically forgiven. However, for larger debts, it is advisable to follow these steps:

• Review the notification: Hacienda usually sends a notification detailing the amount owed and the reason for the debt. It is essential to read it carefully to understand the situation.

• Verify the accuracy: Make sure the debt is correct. If you believe there is an error, you can file a claim or appeal with the Tax Agency.
• Pay on time: If the debt is correct, make the payment within the indicated period to avoid surcharges. You can do this through the different methods offered by Hacienda, such as payment at collaborating entities, bank direct debit, or through the electronic headquarters.
• Request a deferral or installment: If you can't afford the full payment of the debt, Hacienda allows you to request a deferral or installment of it. You must justify your economic situation and meet the established requirements.

If you have doubts or the situation is complex, it is advisable to seek the help of a professional in tax matters. One who can guide you and help you make the best decisions.