Recently, IRB wrongly sent many CP 500 notices to taxpayers which lead to confusion. In the notice, taxpayers were asked to make instalment payment to IRB. The notice states the amount, due date and number of instalments the taxpayer have to pay.
If you are one of the average taxpayers (including me) that never heard of CP 500 and yet received this notices, then read more to find out what is it.
What is CP 500?
It is a notice issued by IRB to taxpayers who have other income such as from business, rentals, commissions from multi-level marketing or insurance on top of monthly employment income.
In the notices, taxpayers will be given the amount, due date and number of instalments the taxpayer have to pay.
Taxpayers who do not have side income may received such notices due to possible errors in their income tax return forms. For example, they must have wrongly put dividends, bonuses or pensions in the other earnings column instead of the salary column.
Due to the error, IRB system automatically captures the data on the other earnings and thus, the taxpayers will be issued the CP 500 notices.
If you do not have any other income on top of your monthly employment salary and yet received CP 500 notice, what you need to do is go to the branch handling that your file to cancel the notice immediately.
Please remember to bring along your supporting documents such as the EA form to prove that you do not have income other than their monthly salaries.
It is very inconvenience to the taxpayers because of this error but if the error come from the taxpayers themselves, then nothing much to complaint.