Revenue will send letters to taxpayers in the fine mesh – 09/28/2023 – Market

The Federal Revenue began sending letters to 400 thousand taxpayers across Brazil who are in the 2022 Income Tax fine mesh.

Shipping began this Monday (25th) and will be completed on October 16th. The project aims to help taxpayers settle outstanding issues and avoid penalties such as ex officio fines.

Among the most common errors that lead to the declaration being fine are:

• not declaring income received;
• do not include income earned by the dependent;
• not reporting all retirement income, when the holder or dependent receives benefits from more than one paying source;
• error in the value or year of the declared medical expense;
• report expenses that cannot be deducted as medical expenses;
• inform deductions not accepted by legislation

To consult the pending issues identified in the IR declaration, it is not necessary to visit the Federal Revenue Office in person. The consultation is available in the “DIRPF Statement”, which can be accessed on the e-CAC (Federal Revenue Virtual Service Center) page on the internet.

According to Revenue data released last Friday (22), 1.4 million taxpayers fell into the fine mesh in 2023, which represents 3.1% of the total. Income Tax deductions lead the way, followed by omission of income and difference between the tax declared by the taxpayer and that reported by the paying source, among others.

Between March and September this year, the IRS received 43.5 million Income Tax 2023 declarations. Of the total declarations retained in the network, 955 thousand have tax receivable, 386 thousand have tax payable and 26 thousand have a zero result, In other words, there is no income tax to be refunded or paid.

Of the total declarations in the fine mesh, 58.1% are linked to faulty deductions, with medical expenses being the main reason. There are 42.3% of errors when trying to deduct medical expenses. In this case, the taxpayer may have tried to obtain a discount by declaring expenses not permitted by law or by not being able to prove the expense.