IRD refers to income in respect of a decedent, which refers to the money that an individual earned but did not receive before their death. This income is considered part of the individual’s estate for tax purposes and is subject to taxation either for the estate or the eventual recipient. It is crucial to distinguish this type of income from earned income, which is the money earned from employment, and unearned income, which is the money earned from investments.
Income in respect of a decedent refers to the income that a person earns but does not collect before their death. This income is considered part of the decedent’s gross estate for estate-tax purposes. In terms of income-tax purposes, it is either taxed to the estate or, if the estate does not collect the income, it is taxed to the person who eventually receives it. For instance, if a person earns money from work but passes away before receiving it, that money is categorized as IRD. For example, if someone earns a paycheck in December but dies before receiving it, that paycheck is considered IRD. It will be included in the person’s estate for estate-tax purposes and will be taxed to the estate or the eventual recipient for income-tax purposes.
Ird stands for Inland Revenue Department, which is the tax authority in New Zealand responsible for collecting taxes and administering tax laws.
You can contact the Ird through their website, by phone, or by visiting one of their offices. Their contact information can be found on their official website.
The Ird collects various taxes, including income tax, goods and services tax (GST), corporate tax, and property tax, among others.
You can file your taxes with the Ird online through their website or by using their paper forms. The specific process may vary depending on the type of tax you are filing.
If you fail to pay your taxes on time, the Ird may impose penalties and interest on the outstanding amount. The specific penalties depend on the type of tax and the duration of the non-payment.
Yes, you have the right to dispute a tax assessment if you believe it is incorrect. You can do this by contacting the Ird and providing supporting evidence to support your claim.
The Ird is required to keep tax records for a minimum of seven years. However, they may retain certain records for a longer period if necessary.
Yes, the Ird has the authority to audit tax returns to ensure compliance with tax laws. If selected for an audit, you will be notified by the Ird, and they may request additional information or documentation.
Yes, if you have overpaid your taxes or are eligible for certain tax credits, you can request a tax refund from the Ird. This can be done through their online portal or by contacting them directly.
If you are unable to pay your taxes in full, it is important to contact the Ird as soon as possible to discuss your situation. They may be able to offer payment arrangements or other options to help you fulfill your tax obligations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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