Identifying errors in the declaration: responsibility and correction procedures

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In the process of fulfilling their tax obligations, organizations and individual entrepreneurs often face the need to make changes to their tax returns due to the discovery of errors. The most common issues among users of the tax portal relate to the procedure for submitting amended returns, the deadlines for paying arrears and penalties, and the determination of the moment of responsibility to the tax authority and the potential consequences of late submission of amendments. The legislation provides mechanisms for minimizing penalties by voluntarily acknowledging the error and promptly rectifying the violations.

Additionally, there is a particular interest in the situation where the error was discovered by the taxpayer themselves, but the deadline for submitting an amended return has already passed. What are the legal implications of such a situation, and how can potential negative consequences be minimized?

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The penalty can be reduced even if you discover the error yourself after the deadline for submitting a revised declaration has passed. The legislation and explanations provided by the Federal Tax Service of Russia explicitly state that if the taxpayer discovers the error themselves and submits a revised declaration, this is considered a mitigating circumstance. In such cases, the penalty can be reduced by at least two times the regular amount, even if the tax and penalties were not paid on time.

However, it is only possible to completely avoid the penalty under certain conditions. For example, if you had a positive balance on your unified tax account that covered the amount of tax and penalties at the time of submitting the revised declaration, and you submitted the revised declaration before the tax authorities discovered the error or initiated a review.

If there was no balance or the error was discovered after the review, the penalty can still be reduced. It is important to acknowledge the error yourself and submit the revised declaration as soon as possible. In some cases, it may be possible to further justify the reduction of the penalty by other mitigating circumstances, such as the absence of intent, the first-time occurrence of the violation, or difficult life circumstances, among others.