Does my P60 balance need to be €0.00 when applying for naturalization?

[toshinobu]

My P60 for 2020 shows I underpaid €980 in taxes and under it reads:

"Collected by reducing your credits in future years €245.08 2022; €245.08 2023; €245.08 2024; €245.08 2025
All future refunds will be automatically offset against this underpayment until it is fully collected".

Would my naturalization be denied if I don't clear this balance now before applying or would I be okay to submit my application?

[Vorona]

Can't say that you application will be refused solely because of this, but any issues with Revenue will be viewed negatively, and you will be required to provide up to date tax clearance certificate anyway:
https://www.irishimmigration.ie/etax-clearance/

"It is advisable not to apply for a certificate of naturalisation without a tax clearance certificate or a Revenue letter of tax compliance."

[littlerr]

No. That is absolutely fine. It is a result of your company receiving COVID payments which deferred your tax liability from 2020 to the next 4 years. There is nothing you need to do. Any company who had received this payment would see their employees having the same issue.

You can choose to pay all outstanding taxes right now via PAYE, but it is not a requirement and the government has made it very clear that you just need to work as normal and they will deduct a portion of the underpaid tax every month across the next 4 years.

(Plus there is still a chance these payments might be reversed anyway, as some opposition parties are strongly against the idea.)