Income Tax: How do you declare who died? – 05/30/2023 – Market

A person’s death does not mean that their 2023 income tax return does not need to be submitted. The heirs, the spouse or a legal representative will have to forward this person’s data if he or she died in 2022, calendar year of the Federal Revenue, left assets to be shared and fits one of the conditions that oblige the rendering of accounts to the Treasury .

For example, if the person who died had taxable income such as salary, retirement, pension from the INSS (National Institute of Social Security), receipt of rent and dividends whose sum exceeds R$ 28,559.70, it is necessary to send the income tax return by 23:59 this Wednesday (31).

Failure to do so will result in a fine with a minimum value of R$ 165.74 and a maximum of up to 20% of the Income Tax to be paid in the year. The amount will be debited from the estate, commonly called inheritance, when the sharing is defined either by public deed (when there is consensus between those involved, registered in a notary) or judicial process (when the Justice decides the division of assets).

If the person who died did not leave assets to be shared, it is not necessary to make the estate declaration.

If you have assets to divide, the person responsible for the declaration is the executor, a person designated as responsible for the estate, which may be the sharecropper (widow or widower), an heir or someone with legal representation.

He needs to open an initial estate if the person died in the calendar year of the declaration. That is, this year, the initial estate is for deaths that occurred in 2022.

If the death occurred on January 1, 2023, the initial estate must be made in the IR declaration in 2024. In this case, the information passed on to the Revenue in 2023 will be a normal adjustment declaration, communicating all your financial transactions, including eventual deductions for tax abatement.

While there is no definition of the inheritance, it is mandatory to keep the Income Tax return of the dead person, but in the following years it is called an intermediary estate. It must be done year by year until the partition is completed. When this occurs, it is transferred to the final estate, but it is done in the income tax of the year following the end of the process. The exception is if there was a court decision and it took place in January or February. In this case, the final estate can be made in the same year in which the inventory was signed.

“In case of public deed [em cartório], there is no such exception. The estate declaration can only be made in the year following the IR calendar year”, says lawyer Henrique Paslar, specialist in personal taxation at Abe Advogados.

initial estate

In the case of people who died in 2022, the person responsible for sending the declaration must open the identification form and enter, under “Main occupation”, the code 81 (Estate). Leave the field just below (Main Occupation) blank.

Another measure to be taken is to open the “Estate” file that is in the menu on the left side of the program and enter the name and CPF of the person who died.

After that, make the declaration normally, having income and bank information, invoices, receipts and vouchers to explain the financial movements to the Revenue, if necessary. If there are deductions, such as medical and education expenses, they can be reported. “Everything that the taxpayer paid in life in this calendar year must be informed”, says Paslar.

If there is a tax payment to be made, the executor will be responsible for the discharge, but the amount leaves the estate. “If there is a refund, the normal procedure is to inform the checking account that remains open for the heirs”, says Paslar.

If there are pending declarations from previous years of those who died, the person responsible for the declaration must send a rectifier for each year. To do this, you need to enter the Revenue e-CAC (Virtual Service Center) system.

intermediate estate

The declaration of the year following the opening of the initial estate is called the intermediate estate. Completing it follows as a normal adjustment statement with the updating of data reported in the previous year.

“All taxable and exempt income, rental income, dividends and other amounts received in the estate’s CPF will be informed in the initial and intermediate declaration”, says Rogério Ramos, IOB consultant.

The intermediate estate must be declared by the calendar year of the final decision on sharing. “If you have the possibility of an appeal in the event of a lawsuit, follow the intermediary estate until a final and unappealable decision is reached”, says Eduardo Marciano, specialist in Income Tax at King Contabilidade.

final estate

When the judicial process is final and unappealable (when there are no more appeals) and there is an inventory or when there is a public deed, the Income Tax return of the deceased person changes to final estate and can only be delivered in the complete model.

This classification will be in the year following the definition of division of assets, as the IR calendar year always refers to the year prior to the year in force. The exception is if the court decision took place in January or February. In this case, the final estate can be made in the same year as the judgment.

The person responsible for the declaration must open the Revenue program and select the item “New” and choose “Final Declaration of Estate” in type. In the “Heirs/Shareholder” form, fill in the details of each person who received the inheritance. In “Estate”, enter data from the court decision or public deed, enter the year of death, specify that it is a final estate and add information on the heirs.

In the “Assets and Rights” sheets, it must be explained in the “Discrimination” field of each asset how the division was made. In the “Situation on the Sharing Date” field, the value contained in the last statement submitted by the taxpayer who left the inheritance must be informed. Next to it, there is an icon with the percentage symbol, click on it and fill in the name, CPF and percentage of each person who inherited this good.

Finally, in the “Transfer Value” field, the amount informed is the acquisition value or the market value, if the update has been made.