If you received a "Notice of Provision of Financial Transaction Information"... the National Tax Service has already finished checking your accounts

If an heir receives a 'Notice of Provision of Financial Transaction Information,' this should be interpreted to mean that the National Tax Service has already secured the financial information of the relevant account. This is because, by the time the notice arrives, it is highly likely that the National Tax Service has already requested the data from financial companies and completed its verification.

Account inquiries are already finished; the notice is a 'post-facto notification'

According to a video from the YouTube channel 'Semujosa-neun Peonpeontaekseu | Guksecheong Josaguk Chulsin,' the Notice of Provision of Financial Transaction Information is not a warning that they are about to look at your account, but a document informing you that they have already looked. When the National Tax Service requests and receives data from financial companies based on legal grounds, the financial companies must notify the customer of this fact in writing in accordance with relevant laws.

Typically, written notification should occur within 11 days from the date the financial information is provided, but if the tax authorities apply for a deferral for the efficiency of the investigation, the notification can be delayed for up to 6 months. In such cases, a tax investigation or a request to submit explanatory materials may arrive within 6 months, or a notice from the bank may arrive after 6 months have passed. Therefore, when a notice arrives, there is a high possibility that the National Tax Service has already verified most of the data requested from the relevant financial institutions (such as KB Kookmin Bank, Woori Bank, KakaoBank, etc.). The video explained, "This notice does not mean they are going to look at my account, but that they have already looked."

The notice contains the name of the institution that requested the information, the contact information of the person in charge, the requested account, the period provided, and most importantly, the 'legal basis under the tax law.' The video emphasized that "you can make predictions by looking at these parts," stressing the importance of understanding the National Tax Service's intentions through the contents written on the notice.

The 'inquiry period' in the notice allows for predicting the purpose of the investigation

By analyzing the 'inquiry period' specified in the notice, one can somewhat predict the purpose of the National Tax Service's investigation. The video presented two specific scenarios based on the scope of the inquiry. If the scope of the inquiry reaches the last 10 years, it is highly likely that the purpose is to check for tax evasion through 'pre-inheritance gifts.' On the other hand, if the inquiry is concentrated on the 2 years immediately preceding death, it can be seen as an intention to intensively examine whether there is 'presumed inherited property.' However, the video added, "While we do not conclude the purpose of the investigation solely by looking at the inquiry period, predictions can be made."

In the case of inheritance tax, property transferred to an heir within 10 years before death is added to the inherited property. For those who are not heirs (such as daughters-in-law, sons-in-law, grandchildren, etc.), the standard is 5 years. Therefore, even if an account is in a child's name rather than the parents', it can be subject to verification if it is an account managed by the parents. The video explained, "There are actually quite many accounts that are in the child's name but were managed by the parents," noting that notices can also be sent to daughters-in-law or grandchildren who are not heirs.

Voluntary reporting and account organization are key to responding to tax investigations

Receiving a notice does not mean you need to go to the National Tax Service immediately to provide an explanation. The video advised, "Since you have not received a document directly from the National Tax Service, there is no need to go and say other things," and recommended not throwing away the notice but taking a photo and keeping it. One should be careful not to mistake it for an advertisement and throw it away just because it is not mail sent directly from the National Tax Service.

Instead, it is necessary to go through the process of organizing the account history during the period written on the notice in advance. One must review whether there were large transfers or if there are gift assets that were missed in reporting. If an omission is discovered, it is advantageous to perform a voluntary report before the tax investigation begins in earnest. This is because if one pays taxes voluntarily before an investigation occurs, many penalty taxes can be reduced. The video advised, "Even if you pay a little bit of penalty tax or fine, doing it in advance is much better than waiting for an investigation."

Furthermore, the key to responding is to meticulously organize account flows, such as details used for parents' living expenses, medical bills, nursing care costs, or support costs, or cases where real estate was acquired through the support of parents. The video advised, "The notice is not the result, but a signal that the verification has started," suggesting it is desirable to review one's own account issues in advance based on the written period and scope.