Income Tax: 7 errors in the pre-filled declaration – 05/25/2023 – Market

In the final stretch of the deadline for delivering the 2023 Income Tax, the pre-filled declaration is an option for those who have little time and have not organized themselves to render their accounts with the Federal Revenue.

The appeal brings part of the completed declaration due to the crossing of data sent by doctors, hospitals, companies, banks, brokerages, real estate registries, exchanges and government agencies such as the Revenue and the INSS (National Institute of Social Security).

However, accountants interviewed by the Sheet reported errors that could compromise the declaration and even lead the taxpayer to fall into fine mesh.

Although the information is sent by banks, companies, government and service providers, the Revenue warns that the taxpayer is responsible for his statement. Therefore, the agency reinforces that the data filled in automatically must be revised.

The income tax return must be submitted by 11:59 pm on May 31st. If the taxpayer who is obliged to settle the accounts does not meet the deadline, he will pay a fine. The minimum amount is R$ 165.74 and can reach 20% of the tax due in the year.

How to avoid the main mistakes of the pre-filled declaration

1- Medical expenses

The amount informed by the doctors or companies responsible for providing assistance to the government is not the same as that shown on the receipt or invoice passed on to the client. As the expense can be deducted in the calculation of the tax in the complete model, the taxpayer can stop at the fine mesh if he declares a value higher than what was sent by the service provider.

The recommendation is to change the value declared in Payments Made, following what was informed on the receipt or invoice. If possible, advise the doctor or hospital to change the DMED (Declaration of Medical and Health Services).

Another problem noted by taxpayers and accountants is the lack of data from health plans. In this case, it is necessary to open a new form in Payments made, select code 26 (Health plans in Brazil), inform if the expense belongs to the holder, the dependent or the beneficiary, fill in the operator’s name and CPF or CNPJ, describe the reason for the expense and declare the amount paid and the non-deductible portion, if part of the amount was refunded.

2- Retirement and pension

Accountants heard by Sheet reported the absence of INSS data related to retirement and pension payments. The problem was noticed in cases of taxpayers who received less than R$ 28,559.70 in the year – those who receive more than that amount are obliged to send the declaration.

“It is the mistake that most caught my attention, as it is a benefit offered by the government and should be communicated in the pre-filled statement. If the person trusts the pre-filled statement, he will fall into the fine mesh”, says Dilma Rodrigues, partner from Attend Contabilidade.

The INSS informs that it sent the data of retirees and pensioners to the Revenue and forwarded the income report, which can also be consulted through the Meu INSS application.

What to do if the pension or retirement is not included in the pre-filled form:

• Enter Declaration Sheets and select Taxable Income Received from Legal Entities. Click New

• Fill in the data sent in the INSS income report with name and CNPJ, income received from a legal entity, official social security contribution, withholding tax, 13th salary and IRRF on the 13th salary. Review the data and click OK

• Then go to Exempt and Non-Taxable Income, and click on New

• If it is retirement or pension for those aged 65 or over, select line 10 under type of income. If the benefit was due to serious illness or accident, select line 11

• Identify whether it belongs to the holder or the dependent, fill in the name and CNPJ of the INSS, indicate the amount and the 13th salary. Review the data and click OK

3- Investments

In 2021, Revenue changed the way of declaring investments, increasing divisions with the aim of being more specific. Investment funds need to be declared separately for each fund purchased. Previously, they could be grouped together.

The CNPJ to be declared in Assets and Rights must be that of the fund, and not that of the bank or brokerage house where the purchase was made. As for Income Subject to Exclusive/Definitive Taxation, the CNPJ to be informed may be that of the bank or the fund, depending on the investment made. The recommendation is that the taxpayer follow what is in the income report.

Claudinei Tonon, president of the Union of Accountants of São Paulo, cites as an example a case in which the pre-filled did not have the values ​​of investment funds and others in which savings, CDB and shares had a balance different from that contained in the report of income.

Dilma Rodrigues reinforces the need for the taxpayer to review the data. “We noticed that information from the banks is missing from the pre-filled statement, but that it is coming correctly on the income statement. Therefore, put what is in it on the statement.”

Investments need to be declared in Assets and Rights and also in Exempt and Non-Taxable Income (cases of savings, LCI, LCA, CRI, CRA, debentures and shares with sales below BRL 40,000 in the year) or in Income Subject to Taxation Exclusive/Definitive (cases of CDB, RDB, investment funds, Direct Treasury and shares with sales of more than R$ 40,000 in the year).

4- Investments in joint account

Also called the attention of accountants the fact that investments in a joint account enter the total amount for all the people who share the account. In this situation, Claudinei Tonon recommends that only one of the taxpayers declare the investment or that the parties declare only the part that is up to each one.

The change must be made in “Assets and Rights”. The issue is occurring on “Situation on 12/31/2022” with the full amount being mentioned by the bank. “The recommendation is that each one put the value relative to their share, or just one of the taxpayers declare”, says Tonon.

5- Buying and selling real estate

Another item that deserves care is the purchase and sale of property. The president of the Accountants Union of São Paulo says that there may be flaws in the value. “The pre-population is taking the registration value, not the acquisition cost value. If the person bought a financed property, the value of 12/31/2022 must have the sum of what he paid in the year, either entry , financing installments and taxes. And not the amount stated in the deed”, explains Tonon.

The divergent information of the value can lead the taxpayer to the fine mesh, since he needs to justify the amount spent on the property. In the case of a financed purchase, the declared value increases as the installments are paid. “Each year, it is necessary to update this value. Therefore, putting the registration value is wrong”, says Marco Antonio Vasquez, partner at VRL Advogados.

In this case, the taxpayer must change the amount contained in the pre-filled declaration, also considering what he spent in the calendar year, which is 2022.

6- Lawsuits

If the taxpayer won a lawsuit in 2022, he needs to declare it to the Income Tax and check that the information provided is correct. Accountant Edilson Conrado Ferreira Junior, vice-president of the CRC-RJ (Rio de Janeiro Regional Accounting Council), reports cases of clients who had the value declared incorrectly by those who lost the action. “The pre-filled came with a different amount. It may have been an error on the part of the person who sent the information, in this case the company that lost the process.”

According to the accountant, the taxpayer must follow what appears in the statement of the judicial calculation, which is usually in the process. “The calculation is made by the expert and included in the process. Whoever declares must follow this calculation and, if possible, question the source about the difference in value.”

Payment of arrears is stated in Accumulated Earnings. It is necessary to inform whether the form of taxation is annual adjustment or exclusive at source, fill in the name and CPF or CNPJ of the paying source, taxable income, 65-year-old exempt portion (if any), amount related to interest, official social security contribution and tax withheld at source.

In the case of a labor action, the worker must follow the judge’s decision. Indemnity sums, such as the FGTS (Employment Severance Indemnity Fund) and unworked prior notice, are exempt and must be declared on the Exempt and Non-Taxable Income form. Salary sums (salary and overtime, for example) pay Income Tax; in this case, they must be reported on the Accumulated Earnings form.

7- Duplicate data

Another point of complaint from taxpayers in reports on social networks is the presence of duplicate data on investments, expenses paid to doctors and goods and rights. It is necessary to leave only one sheet for each item, excluding the duplicated item.

“The pre-filled declaration gives you a good overview of what you have to declare, but you need to check all the data and see if everything is correct before sending it. After all, it’s the taxpayer’s responsibility”, says Dilma Rodrigues.