HM Revenue & Customs (HMRC) has changed its procedure for dealing with compliance checks on IHT400s. From 2 July 2012, if a case has been selected for a compliance check relating to an IHT400, the following process will now take place:
- An initial letter will be sent to the agent or the taxpayer (if there is no agent) providing notification that they have been selected for a compliance check;
- Following this letter, the HMRC compliance investigator who has been assigned the case will telephone the agent or taxpayer to articulate the issues and risks which HMRC have identified with the tax position on the estate and to agree reasonable timeframes for the provision of any information requested;
- If the timeframes are not met then the compliance investigator will make a second telephone call to identify the reasons for not meeting the timeframes. This may then be followed up by issuing an Information Notice.
It is intended that by introducing direct contact with the agent or taxpayer the time taken to deal with compliance matters will be reduced. Hopefully it will enable a collaborative relationship to be established between the compliance investigator and the agent or taxpayer.