Income Tax: How to check if I fell into the fine mesh – 06/01/2023 – Market

Once the deadline for sending the 2023 Income Tax returns has ended, the taxpayer can now find out if pending issues have been found and if he is in the fine mesh of the Federal Revenue Service. According to the agency, historically 5% to 7% of declarations fall into the fine mesh.

The query is carried out through the My Income Tax application, available for download on cell phones and tablets, or through the e-CAC (Virtual Service Center) of the Federal Revenue Service.

The difference between them is that the application has simplified information and only lets you know if the statement has already been analyzed by the Revenue, while the e-CAC indicates which discrepancies led to the statement being withheld, which prevents, for example, the payment of possible refund.

Therefore, the Revenue recommends that the taxpayer use the e-CAC to find out their situation. The body requests that the person consult the tool the day after the submission, as the verification of the information is done on the night that the taxpayer forwards the declaration, and the result of the evaluation is made available the following day.

The declaration falls into the fine mesh when there is some discrepancy between the information provided by the person who declared and by third parties, such as service providers, companies and financial institutions.

The person who chose to download the program on the computer needs to consult the e-CAC or download the My Income Tax application.

How do I check the My Income Tax app?

You must have a login and password on the gov.br website. If you haven’t registered, click here to find out how to do it.

Once the process is done, enter the application and see the IRPF 2023 situation in the item “IRPF declarations”. For security reasons, the Revenue provides only simplified information in the app and provides the following messages:

• Not delivered: Declaration not yet delivered
• Awaiting processing: Claim has been received but is still being processed
• With pending: Declaration has pending issues and is in the fine mesh
• Subpoena or notification issued: Declaration is in the fine mesh and there is subpoena for the presentation of documents or notification of release for the declaration
• Return queue: Declaration has been processed and the taxpayer will be entitled to a refund, which has not yet been made available
• Processed: Declaration has already been processed by the Revenue. For those who have tax to pay, the system will show whether the payment has already been made
• Cancelled: Declaration was canceled by the taxpayer or by letter

How to consult the statement extract in the e-CAC

The taxpayer must have a login and password on gov.br and be at the silver or gold level. Once logged in, go to the “My Income Tax (DIRF Extract)” option. The Revenue generally provides the following messages

• Not delivered: Declaration not yet delivered
• Processing: It is the first stage of declaration. Indicates that it has been received but is still being processed
• In queue for refund: Declaration has already been processed and the taxpayer will be entitled to the refund, which has not yet been paid
• Processed: Declaration was processed by the Revenue, but it can still be audited in up to five years. If there is tax to be paid or refunded, information is available by clicking on “Processed”.
• With pending: Declaration has pendencies
• Under review: Declaration was received, but is under evaluation by the Revenue, awaiting presentation of documents that prove the data sent
• Rectified: Previous statement was replaced by the rectifier
• Cancelled: Declaration was canceled by the taxpayer or the tax administration
• Hand treatment: Declaration is being analyzed

If your statement has pending issues, choose the item “Pending Issues”. If there is any inconsistency, the reason for the retention will be informed. The taxpayer needs to correct and send an amending statement. It is no longer possible to change the taxation model (legal or simplified deductions), since the deadline ended on Wednesday (31), at 23:59.

If the message “Processed” appears, the statement may still fall into the fine mesh. For this reason, it is important to consult the “Mesh Pending Issues” item.

Last year, the three main reasons that led taxpayers to provide clarification were:

• 40.6% of declarations with indication of omission of income. In most cases, these are secondary paid activities (the person has a steady job, but performs other sporadic activities and forgets to declare them). It is also common to forget the income of dependents.

• 21.7% of cases with divergence with medical expenses. There are usually two reasons: declared expenses that are not deductible and discrepancies caused by non-confirmation of information by the receiving party (the taxpayer declares that he paid X, but the recipient does not confirm or report a lower payment).

• 18.6% of cases with divergent withholding information. The taxpayer’s data on the tax withheld is different from that informed by the source that made this payment.

How to get out of thin mesh?

The executive director of Confirp Contabilidade, Richard Domingos, recommends that the taxpayer look at the outstanding issues mentioned by the Revenue, check the invoices, income statements and other documents and correct the data. “If the data is correct and pending issues continue, the taxpayer should consult the paying source or whoever sent the data with discrepancies and ask for correction. When that source corrects it, the situation is normally regularized”, he explains.

If the taxpayer has used the pre-filled declaration and identified the discrepancy at the time of the declaration, he can notify the source that declared the data.

“The Revenue will be watching especially if the amount declared by the doctor is lower than that mentioned by the taxpayer, as in this case it reduces the taxpayer’s tax. In this situation, if the taxpayer is right, it is important to seek out the doctor or whoever provided the service to correct the Dmed (Declaration of Medical and Health Services)”, explains accountant Dilma Rodrigues, partner at Attend Contabilidade.

After fixing the pendencies pointed out by the Revenue, the taxpayer needs to send the rectifying statement and follow up with the e-CAC again to find out the situation. If the declaration continues to be withheld even after correcting all outstanding issues, the Revenue recommends that the taxpayer separate the documentation that proves the information provided. This material must be kept for five years, a period that the government may request.

As of January 2, 2024, taxpayers will be able to submit all documents in advance to regularize their situation. If the documents are approved, the institution will place the taxpayer in the residual batch to receive the refund, if that is the case.

Documents can be sent over the internet, through e-Process or e-Defense and also at a Revenue unit.

I’ve been notified. And now?

A procedure adopted by the Revenue is to send a tax summons to the taxpayer, explaining what has to be done to make the mesh fine. In this case, the person must read the guidelines and submit the requested documents. Then, he monitors the case via e-CAC to find out if the pending issue has been resolved.

“From the moment the Revenue begins to assess whether the tax will be charged, the taxpayer cannot do anything else unless he is summoned to do so. You are accompanied by the mesh process, which generally lasts from six months to one year”, explains Richard Domingos.

The taxpayer may also receive a notice of release, when the IRS determines the amount that has to be paid. If the person agrees with the amount, they can have a 50% discount if they pay in cash within 30 days, counting from the receipt of the notification. The amount can also be paid in up to 60 installments, as long as the installments exceed R$100. Payment of the first installment within 30 days of receiving the notification allows a 40% discount.

I do not accept the value and want to contest. How do I do?

A taxpayer who disagrees with the amount may appeal and file an entry rectification request (SRL). The information is available in the “Notice” box of the Release Notice.

See step by step below

• Access the Federal Revenue’s e-Defense system, in the “Attendance referring to” field, select “IRPF release notification” and enter the CPF and release notification number

• Fill in the SRL data and indicate the infractions that you agree and disagree with, presenting the justifications. Print the document and sign.

• Next, you need to enter the e-CAC system with your gov.br login and password. A silver or gold level account is required to access

• When entering the e-CAC, click on Digital Processes (e-Process) in the menu on the left side

• Go to “Request service via digital process” and a form will open

• Select the “IRPF tax grid” area and the “Request Entry Rectification – SRL” service

• Enter the release notification number and a contact phone number. Click request service. For each SRL, it is necessary to open a new process

• The taxpayer needs to send the request for the addition of documents within three working days, selecting the type of document “Request for Rectification of Entry – SRL”. In addition to the case-specific documents, you must submit the signed entry rectification request and your official identification document

• If there is a legal representative, it is necessary to send his official identification document and documents that prove his legitimacy. In the case of a proxy, it is necessary to send the power of attorney and an official identification document.

• Follow the process through the e-CAC or the e-Processo application. Monitoring can be done through the My Processes option. If the process is archived, it will go to the Inactive tab. If it is denied, the taxpayer will receive a new notification and will have up to 30 days to file an objection, if applicable.

Another possibility is for the taxpayer to request a total or partial challenge to the amount imposed by the Revenue. If the person agrees with part of the notification, he must pay or pay in installments that part he agrees with. In this case, he has the same discounts of 50% for payment in cash or up to 40% in the first installment if he pays in installments in case of settlement of the amount within 30 days after receiving the launch notification.