Whether due to lack of attention, error or lack of documents, one of the most traditional obligations of Brazilians can end up in a headache. Instead of receiving a refund, the taxpayer may be required to redo the Individual Income Tax Return and provide additional accounts to the Tax Authorities. In the worst cases, the IRS can charge a fine of up to 75% of the tax owed.
With the delivery deadline, which starts this Monday (7) and goes until April 29, the Income Tax Declaration requires care. Last year, 869,300 taxpayers fell into the fine mesh, from a universe of 36.8 million statements sent. The main reason was the omission of income, with 41.4% of the occurrences, followed by the lack of proof of deduction, responsible for 30.9% of the statements withheld in 2021.
How to prevent mishaps? According to lawyer Edemir Marques de Oliveira, specialized in tax law, anticipation when gathering documents and transparency in the provision of information are the main precautions that the taxpayer should have. “The first thing is to try to be as honest as possible with the IRS. And in that transparency, the taxpayer must gather all the documentation they can in terms of deductions and income,” he explains.
Among the income most likely to give trouble, says the lawyer, are rental income and capital gains from the sale of real estate. “The taxpayer must be organized not only when declaring the Income Tax, but throughout the year”, says Oliveira.
Regarding deductions, the lawyer advises the taxpayer to demand an invoice and keep all receipts for expenses that can be deducted, such as education and health.
Rental income and capital gains from the sale of real estate are among the most likely to give trouble in filing- José Cruz/Agência Brasil
Tips
For Oliveira, the great novelty of 2022 that can result in the reduction of errors and omissions is the pre-filled tax return. In this model, the taxpayer receives a form with data from statements sent by companies, financial institutions, real estate and doctors, and it is only up to check the data. The entire process is done in Virtual Revenue Service Center (e-CAC).
Until now only available to taxpayers with digital certification (type of electronic signature sold on the market), the pre-filled declaration was expanded this year. The tool can be used by those who have a silver or gold account on the Gov.br Portal. The lawyer, however, recommends attention to those who opt for this feature.
“The declarant must compare the information with the documents before confirming the data. If you find any discrepancies, you must adjust the information and keep the document or receipt for possible clarifications to the Tax Authorities”, guides Oliveira.
Finally, the lawyer advises the taxpayer to monitor the processing of the declaration, informed through the e-CAC. If there are problems, a rectifying declaration must be sent as soon as possible. “The IRS offers the opportunity for the taxpayer to self-correct and avoid being subpoenaed”, he justifies.
Check out the main guidelines to avoid errors and omissions and fall into the fine mesh.
- Organize documents throughout the year or at least a few weeks before submitting the declaration
- Be transparent with the Internal Revenue Service and report all income received in the previous year, as well as proof of all expenses that generate a deduction
- Review the declaration before submission to avoid filling errors
- Identify operations that do not occur frequently, to avoid omission of data. Among these operations are the purchase and sale of goods over R$ 5 thousand, which can generate capital gains.
- Avoid including dependents in two claims
- Include dependents’ own income, such as a child receiving benefit from an ex-spouse
- Avoid inclusion of non-deductible or unsubstantiated medical expenses
- Follow up on declaration processing after delivery and rectify inconsistent or omitted data as soon as possible
