Disputed claimsand payment deferrals

Following a tax audit, you have received a reassessment proposal or a reassessment notice followed by a tax bill you wish to contest the tax reassessment, you must file a formal appeal and may request a payment deferral.

A dispute claim also allows you to request a refund of any tax you believe you paid in error, even if you have not been issued a tax assessment.

A dispute claim

In order to file a lawsuit, a taxpayer who disputes a tax assessment must first submit a formal complaint toadministration (LPF, Art. L.190).

This appeal consists of a simple letter in which the taxpayer explains why they believe they should not have to pay the tax assessed or the tax they have already paid.

However, the law sets forth certain requirements for a claim to be valid:

  • This form must specify the tax you are disputing and the amount you are claiming;

  • You must clearly state the legal grounds on which you believe you are not required to pay the tax;

  • the letter must be signed by hand;

  • You must include the tax notice ortax bill the tax you are claiming with your letter.

Response to the dispute claim

Once the complaint has been submitted, several scenarios may arise:

  • Eitheradministration your claim and subsequently reimburse you for the amounts you were wrongfully charged.

  • Ifadministration your claim, you have two months to file an appeal with the competent court.

  • Ifadministration respond to you within six months of receiving your complaint, you may file a lawsuit with the appropriate court. There is no time limit for filing a lawsuit under these circumstances. You may therefore file a lawsuit several years after submitting your complaint.

In certain situations, in addition to refunding the tax,administration pay the taxpayer late payment interest at a rate of 2.4% per month.

The request for a stay of payment

If you have been subject to a tax audit and have received a tax bill, you may file a formal objection with a stay of payment to avoid having to pay the tax assessed (French Tax Code, Art. L.277).

Once the claim has been submitted along with the request for a payment deferral,administration proceed with any seizure until you have received a letter from the public accountant asking you to provide security.

The payment deferral remains in effect until the court issues its decision (or until two months after the claim is denied if you do not file a lawsuit). If you appeal the court’s decision, you will no longer be eligible for the payment deferral.

The payment deferral does, however, come at a cost to taxpayers:

  • If the taxpayer loses the case in court, they will be required to pay late payment interest of 2.4% per year on the amounts they have not paid (LPF, Art. L.209).

  • For certain taxes, such as income tax, a late-payment penalty of 5% to 10% may also apply

If the taxpayer prevails in court, he or she may request reimbursement of the costs incurred in establishing the security (LPF, Art. L.208, para. 2).

The provision of collateral

After you submit your appeal, the public accountant will generally send you a letter asking you to indicate, within fifteen days, what forms of security you can provide. This may include a bank guarantee, a mortgage on real property, a pledge of securities, etc. You must provide security equal to the amount of taxes claimed (the amount to be secured does not include interest or penalties listed ontax bill).

Once the guarantee proposal has been sent to the public accountant, there are two options:

  • If he accepts the guarantees, they must then be put in place;

  • If he rejects the proposed guarantees, it may be possible to offer alternative guarantees or to challenge the rejection through a tax summary proceeding (LPF, Art. L.279).

In the absence of collateral, the taxpayer is granted a “mini-stay,” meaning thatadministration cannot take enforcement actions (such as seizures) but may only take protective measures (such as freezing bank accounts or placing liens on real estate, etc.).

Contact Us

If you wish to file a formal complaint and would like to discuss it, please contact us by email (contact@mispelonavocat.com). We will do our best to respond as soon as possible.

  • To qualify for a payment deferral, simply file a formal complaint stating that you wish to qualify for a payment deferral.

    For a dispute claim to be valid, the following requirements must be met:

    • This form must specify the tax you are disputing and the amount you are claiming;

    • You must clearly state the legal grounds on which you believe you are not required to pay the tax;

    • the letter must be signed by hand;

    • You must include the tax notice ortax bill the tax you are claiming with your letter.

  • A formal appeal consists of a simple letter in which the taxpayer explains why they believe they should not have to pay the tax assessed or the tax they have already paid.

    However, the law sets forth certain requirements for a claim to be valid:

    • This form must specify the tax you are disputing and the amount you are claiming;

    • You must clearly state the legal grounds on which you believe you are not required to pay the tax;

    • the letter must be signed by hand;

    • You must include the tax notice ortax bill the tax you are claiming with your letter.

  • It is recommended that you send the formal complaint by certified mail with return receipt requested so that you have proof thatadministration received the letter.

    According to the law, since the complaint must include a handwritten signature, it is not possible to submit the complaint by email. However, in practice, this is possible because the absence of a handwritten signature can be rectified when the case is filed with the court.

  • The deadlines for filing a dispute depend on the type of tax. If you have received a tax assessment and wish to request a payment deferral, it is recommended that you file your appeal promptly.

    In general, for taxes other than local taxes (LPF, Art. R*196-1), taxpayers have until December 31 of the second following year to file, depending on the circumstances:

    • upon receipt of the tax notice ortax bill

    • payment of the tax.

    For example:

    • With regard to taxes on income earned in 2023, taxpayers file their returns in the spring of 2024 and receive their tax bills in the summer of that same year. They then have until December 31, 2026, to file an appeal.

    • With regard to corporate income tax for a company whose fiscal year ends on December 31, 2023, the company must pay the balance of its corporate income tax in 2024. It therefore has until December 31, 2026, to file a claim.

    For local taxes, the deadline for filing a claim generally expires on December 31 of the year following receipt of the tax assessment notice (LPF, Art. R*196-2).

    For example, regarding the 2023 property tax, for which the notice is sent to the taxpayer in the same year, the taxpayer has until December 31, 2024, to file an appeal.

    There are, however, specific deadlines for filing claims, for example, if you have been subject to a tax reassessment (LPF, Art. R*196-3), or for residents of the European Union in cases of withholding tax,... In certain situations, it is also sometimes possible to request an extension of these deadlines.

  • The deadline for paying a tax bill a tax assessment following a tax audit depends on the type of tax.

    For example, in the case of income tax, if an individual is subject to a tax audit, the payment due date is usually listed in the letter accompanying the tax bill.

    With regard to corporate income tax, if a business or corporation is subject to a tax audit, you are generally required to make payment without delay. You typically have about 30 days to settle the amount owed.administration may sendadministration a formal demand for payment if they believe the payment should be made sooner.

  • The answer to the question depends on whether you need to file a case with the Administrative Court or the Judicial Court.

    You must file a claim with the Administrative Court if your claim concerns income tax, corporate tax, VAT, etc.

    In this case, a lawyer is not required, although one is strongly recommended (LPF, R*200-2).

    If your claim concerns inheritance taxes, gift taxes, the IFI, the ISF, registration fees, etc., you must file it with the District Court.

    In this case, legal representation is required (LPF, R*202-2).

  • A lawyer is required to file an appeal with the Court of Appeals (LPF, R*202-6) or the Administrative Court of Appeals (CJA, R*431-2).