Is your income tax refund still pending? The Tax Agency may have to pay you interest
Every year, when the income tax filing season ends, many people find themselves in the same situation: they filed their return with a refund due, time has passed, and the Tax Agency still has not paid the money into their account. What many people do not know is that, when the Administration is delayed beyond what is allowed, the taxpayer may be entitled to receive interest in addition to the outstanding refund.
The regulations establish that the Tax Agency has a period of six months from the end of the filing season to make refund payments. If that period is exceeded, the Tax Agency is in default and must automatically pay late-payment interest, without the taxpayer having to expressly request it. However, this does not mean that all cases are the same or that delays always occur for the same reasons.
In practice, refunds that do not arrive are usually linked to more detailed checks by the Tax Agency. This may involve reviews of deductions applied, cross-checks of information with other administrations, questions about rentals, property sales, cryptocurrency transactions, or discrepancies between the initial tax data and what the taxpayer declared. It is also common for amended returns—those the taxpayer has modified after receiving warnings or notifications—to be delayed.
For this reason, when a refund takes too long, the most advisable course is not simply to wait indefinitely, but to check what is really happening with the file. It is worth reviewing the return, ensuring there are no pending notifications, and verifying whether the Tax Agency has initiated any verification procedure or whether the delay is already giving rise to the right to receive interest.
At our firm, we frequently assist in cases involving taxpayers who have been waiting for months without a clear explanation, people who have received requests for information and do not know how to respond, or situations in which the expected refund ultimately becomes a different outcome than anticipated. In these cases, we review whether the Tax Agency’s actions are correct, whether the calculations have been made properly, whether it is appropriate to claim additional interest, and, when necessary, we submit representations or appeals to defend the taxpayer’s rights.
If you are still waiting for your income tax refund, if you have received a communication you do not understand, or if you suspect you have not been paid everything you are entitled to, Martínez Caballero Abogados can help you. We analyse your situation, explain clearly what is happening, and support you throughout the entire process so that you do not lose money or rights in dealings with the Administration.
DIANA CABALLERO AGUIRRE
CEO – Founding Partner
M&C Abogados
