FIRS Announces Extended Hours for Year-End Tax Services

Introduction

As the year draws to a close, the Federal Inland Revenue Service (FIRS) has announced extended hours for its tax services, a move poised to significantly impact Nigerian taxpayers. This initiative aims to provide individuals and businesses with more flexibility in meeting their year-end filing obligations, ensuring compliance and avoiding penalties. For many, this development will alleviate the stress associated with last-minute tax submissions, offering an opportunity to seek guidance and resolve outstanding issues directly with FIRS officials. In this article, you will learn about the specifics of these extended hours, the benefits they present, and how you can leverage this period to optimize your tax strategy.

Core Concept

The FIRS's decision to extend its service hours stems from a commitment to enhance taxpayer convenience and compliance. Extended hours refer to the additional timeframes during which FIRS offices and online support will remain available beyond regular working hours. This initiative is particularly crucial for those struggling to meet the December 31st deadline for tax returns, as it provides more opportunities to receive support and submit necessary documentation.

Why does this matter for Nigerian taxpayers? Timely tax compliance is not just a legal obligation but a financial necessity. Failing to meet filing deadlines can result in penalties and interest charges, which can be especially burdensome for small and medium-sized enterprises (SMEs) and individuals. By utilizing these extended hours, taxpayers can access professional assistance and ensure all tax matters are in order before the year-end.

Key Principles and Rules

Extended Service Hours: FIRS offices will now operate late into the evening and on weekends.
Availability of Online Support: Taxpayers can access online portals and helplines for guidance.
Compliance Assistance: Dedicated staff will be available to assist with filing returns, understanding tax liabilities, and resolving disputes.
Deadline Adherence: Despite the extended hours, the December 31st deadline remains unchanged for year-end filings.

In-Depth Analysis

Importance of Timely Filing

According to Section 20.2 of the Nigeria Tax Act 2025, companies must file self-assessment returns at least once a year. For ongoing businesses, this is typically six months after the end of the accounting year. However, many taxpayers leave it until the last minute, risking penalties. The FIRS's extended hours are designed to mitigate this risk by providing additional time for taxpayers to meet their obligations.

Timely filing is crucial not only to avoid penalties but also to manage cash flow effectively. When you file on time, it gives you a clear picture of your financial obligations, allowing for better planning and budgeting. Delays in filing can disrupt cash flow and lead to unexpected financial strain. By taking advantage of the extended hours, businesses and individuals can ensure that their tax affairs are settled without last-minute surprises.

Access to Comprehensive Support

One of the significant advantages of the extended hours is the increased access to personalized support. Taxpayers can get direct assistance from FIRS officials during these extended hours, offering an opportunity to clarify doubts and ensure accurate filings. The FIRS's online platforms, including the recently introduced USSD code *829#, also remain active, making it easier to handle tax transactions remotely.

This support is invaluable for those dealing with complex tax issues or those unfamiliar with the latest tax regulations. Whether it’s understanding the nuances of tax incentives or resolving disputes, having knowledgeable officials available can mean the difference between costly errors and efficient compliance. Moreover, the availability of support on weekends ensures that even those with the busiest weekday schedules can access the help they need.

Leveraging Technology

In addition to physical office hours, the FIRS has enhanced its digital infrastructure to accommodate increased demand. This includes improved online filing systems and responsive customer service channels. As highlighted in recent fiscal reforms, the integration of technology into tax administration is a priority, aiming to streamline processes and reduce the burden on taxpayers.

The FIRS has invested in robust cybersecurity measures to protect taxpayer data, ensuring that online transactions are secure. This investment in technology not only simplifies the filing process but also builds taxpayer confidence in using digital platforms. For a tech-savvy generation, particularly startups and young entrepreneurs, this digital accessibility aligns with the way they do business, promoting greater compliance and efficiency.

Opportunities for Tax Optimization

Extended hours also provide a chance for strategic tax planning. Taxpayers can utilize this time to explore potential deductions and incentives they might qualify for. According to the Tax Administration Act Section 27, individuals and businesses are encouraged to submit annual tax incentive returns. This period allows for thorough review and optimization of tax positions before the year-end.

Tax Optimization Strategies:

Reviewing Deductions: Taxpayers should review all available deductions, such as those for business expenses, education, and medical costs. Each deduction can significantly reduce taxable income.
Exploring Incentives: The FIRS offers various incentives, such as startup incentives and those for investing in certain sectors. Understanding eligibility and applying for these can reduce tax liabilities.
Deferred Income Strategies: For some businesses, deferring income to the next tax year can reduce current tax obligations, providing additional liquidity for immediate needs.

Practical Examples

Scenario 1: SME in Aba

Chinedu runs a thriving textile business in Aba. As December approaches, Chinedu realizes he hasn't completed his tax filings. With the extended hours, he visits the local FIRS office on a Saturday. There, he receives assistance in filing his self-assessment return, ensuring he includes all necessary documents such as audited financial statements and evidence of tax payments. This proactive approach helps Chinedu avoid penalties and positions his business for potential refunds on overpaid taxes.

Calculation Example:

Revenue: ₦10,000,000
Expenses: ₦7,000,000
Taxable Income: ₦3,000,000
Tax Rate: 30%
Tax Due: ₦900,000

By filing on time and with the correct deductions, Chinedu ensures he only pays what's necessary, potentially saving thousands in penalties.

Scenario 2: Tech Startup in Yaba

Amina, the founder of a tech startup in Yaba, is overwhelmed with managing her business's finances. She uses the FIRS online portal during the extended hours to file her company's tax returns. She takes advantage of the USSD code *829# for quick transactions and queries. By doing so, Amina discovers she is eligible for certain tax incentives, reducing her startup's tax liability by ₦200,000.

Incentive Example:

Original Tax Liability: ₦500,000
Tech Incentive Savings: ₦200,000
Net Tax Liability: ₦300,000

This reduction frees up vital capital for business development and innovation.

Scenario 3: Real Estate Investor in Lekki

Olumide, a real estate investor, faced a hefty tax bill last year due to missed deductions. This year, he uses the extended hours to consult with FIRS officials. He learns about allowable deductions for property depreciation and maintenance expenses. By filing early and accurately, Olumide reduces his tax payable by ₦500,000, freeing up capital for further investments.

Calculation Example:

Rental Income: ₦15,000,000
Depreciation and Maintenance Deductions: ₦2,500,000
Taxable Income After Deductions: ₦12,500,000
Tax Rate: 25%
Tax Due: ₦3,125,000

Through strategic filing, Olumide optimizes his tax position, enhancing his investment portfolio.

FAQ Section

1. What are the exact extended hours for FIRS offices? The FIRS offices will remain open until 8 PM on weekdays and will also be operational from 10 AM to 4 PM on Saturdays. For online services, support is available 24/7.

2. Can I file my tax returns online during extended hours? Yes, the FIRS online portal is available around the clock, allowing you to file returns and access support at any time.

3. What documents do I need to bring to the FIRS office for filing? You should bring your audited financial statements, a completed self-assessment form, evidence of tax payments, and any other relevant financial documentation.

4. Are there penalties for filing after December 31st? Yes, penalties apply for late submissions. It's crucial to file before the deadline to avoid additional charges.

5. How can I access the USSD code for tax payments? You can use the USSD code *829# on any mobile network to make tax payments and access related services.

6. Are there any new tax incentives available this year? Yes, there are several incentives, particularly for SMEs and startups, which can be explored during consultations with FIRS officials.

7. Can I get help with tax disputes during extended hours? Absolutely, FIRS staff are available to assist with resolving any tax disputes or queries you may have.

8. What are the benefits of filing early? Filing early helps avoid penalties, improves financial planning, and ensures you can take full advantage of available tax incentives.

9. How secure is the online filing system? The FIRS has implemented robust security measures to protect taxpayer data, ensuring all online transactions are secure.

10. Can businesses apply for tax deferrals during this period? Yes, businesses can consult with FIRS officials about potential tax deferral options, especially if they are experiencing cash flow issues.

Action Plan

Check Your Tax Status: Review your current tax status and obligations. Ensure all required documents such as financial statements and tax computations are up to date.
Utilize Extended Hours: Visit FIRS offices during extended hours for in-person assistance or use the online portal for remote services.
Explore Tax Incentives: Consult with FIRS officials about any tax incentives you may be eligible for. This can significantly reduce your tax liability.
File Early: Aim to complete your tax filings well before the December 31st deadline to avoid last-minute rush and penalties.
Follow Up: After filing, confirm receipt and processing of your returns with FIRS to ensure everything is in order.
Plan for Next Year: Use this period to strategize for the upcoming fiscal year, considering any changes in tax laws or business circumstances.

FIRS Announces Year-End Extended Hours for Tax Services