Do you have a debt with the finance department? Learn how IRS works.

If you have debts with the Tax Authority, you may not receive the IRS refund.

According to the Tax Authority (AT) on the Finance Portal, taxpayers who have debts to the tax office, even if they are entitled to an IRS refund, may not receive it.  

This is because the entity will use the amount of the refund it is entitled to settle the debts it has.

"At the time of issuing the credit, if there are active tax execution processes, i.e., existence of debts, the refund will be applied to their payment," as stated on the Portugal Finance Portal.

Still, "if the amount to be refunded is greater than the amount of the debt, the remaining amount will be returned to the taxpayer," as explained by AT.

However, there may be cases where the taxpayer is entitled to a full refund of the IRS. As clarified on the Portal, "you may be in a refund situation if the tax paid to the State Treasury as a result of withholding at the source or account payments is higher than due".

I was counting on the IRS refund and won't see it? Consider other solutions that guarantee savings in the monthly budget, with the free help of a credit intermediary and insurance mediator like Poupança no Minuto.

If you have credits and/or insurance, the renegotiation of contract terms, or transferring them to new entities, can generate significant savings in your monthly installments. Contact us to evaluate your specific situation.