Tax Agency Scrutinizes Healthcare Expense Claims

Revenue Agency Intensifies Checks on Medical Deductions

Italian taxpayers face increased scrutiny on their declared healthcare costs. The Revenue Agency has outlined new verification procedures, focusing on potential discrepancies between pre-filled tax return data and individual modifications.

Data Cross-Checking Underway

The Revenue Agency, through a provision published on July 3rd, has detailed its methods for verifying healthcare expenses. A key focus will be on the 730/2025 tax models, particularly those altered from the initially provided data. Tax authorities will be cross-referencing information submitted through the Health Card System with taxpayer declarations.

The Health Card System automatically compiles and transmits data on deductible medical and health services. This information is typically sent to the Revenue Agency annually by March 31st. This data serves as the basis for automated checks.

Potential for Discrepancies

When taxpayers, either independently or with assistance from intermediaries like CAF or accountants, amend their pre-filled tax returns, intensified checks may occur. These verification processes, governed by specific tax legislation, empower tax officials to access a taxpayer’s healthcare cost information, including that of their dependents.

The goal is to identify any discrepancies between the pre-filled data and the declared figures. If variations are detected, tax inspectors can request supporting documentation, such as receipts, invoices, and tax slips, to validate the reported health expenses.

“The documentation must be consistent with the figures inserted, otherwise the taxpayer risks incurring more invasive sanctions and investigations.”

Taxpayers who opt to modify the pre-filled tax return data must retain all documentation proving the accuracy of their changes. This evidence needs to be complete and easily legible. The responsibility for demonstrating healthcare costs exceeding those recorded by the health card system, for oneself or dependents, rests entirely with the taxpayer.

For instance, in 2023, the Italian Revenue Agency identified over €1.7 billion in undeclared income through enhanced data analysis and cross-referencing of taxpayer information. This highlights the agency’s commitment to ensuring tax compliance (Source: Agenzia delle Entrate, 2024 Annual Report).