In May this year, we introduced an enhancement to allow our customers (individuals and non-individuals) to apply for an extension of time (EoT) through myIR.
This service is only intended for customers who are applying for an individual EoT, and who are not eligible for an EoT as a client of a tax agent.
For customers who are a client of a tax agent, their extension of time is managed through their linking to the tax agent and not through the client applying for an individual EoT themselves.
If the client’s EoT has been withdrawn, this may be reinstated for the following filing year if either:
- all overdue returns are filed, and the current year return is filed before a late filing penalty is applied
- due to circumstances, it's unrealistic to expect the client to file their current year return before a late filing penalty is applied.
Approval for reinstatement of the client's EoT may be negotiated providing all the following apply:
- the reasons for not filing earlier year returns by 31 March have been reviewed
- the earlier year returns have been filed
- the tax agent gives Inland Revenue a written undertaking that their client’s current year return will be filed by 31 March.
Where a written guarantee cannot be provided, an individual extension of time may be negotiated. If a tax agent wants to apply for an EoT reinstatement, they can do this at any time. However, if the late filing penalty has already been charged this will not be reversed.