2020 Income Tax: caution to avoid falling into the fine mesh

Discover the main reasons that lead the Federal Revenue (RFB) to retain the IR report

As the deadline to report the Individuals Income Tax Return (DIRPF) approaches, it is important to spend some time filling the form carefully. Attention at some issues is essential so that the taxpayer does not have the report retained in the so-called "fine mesh".

Usually, the taxpayers must file the statement by the end of April, but the deadline was extended sixty days in this year due to the coronavirus pandemic. The deadline then became June 30.

In addition to meeting the deadline, the taxpayer should avoid failures in filing the report that may lead to pending with the tax authorities.

Fine mesh retainings

According to the RFB information, 700,221 statements were retained in the fine mesh in the last year due to inaccuracies in the information and supporting documents, representing 2.13% of all transmissions.

Find here the main reasons that led to retaining in the fine mesh in the last year:

• Failure to provide accurately the taxpayer or the respective dependents income (35.6% of the cases);
• Inaccuracy in the deduction of medical expenses (25.1%);
• Disagreements between the IRPF reported in the statement and the one reported by the paying source (23.5%);
• Problems in deducting official or private pension, dependents, alimony and others (12.5%).

The RFB system detects errors or omissions efficiently and agile through taxpayers’ reported data crossing, for example, by payers and service providers, such as doctors and dentists.

In this sense, the organization of receipts, documents and other proofs play an important role in preventing failures in filling the report.

See also: Time to resume organizing the IRPF 2020

Avoid the most common failures and default in reporting the IR

Knowing the common failures while filling the report helps to understand what should be avoided. See the following:

Main failures:

• List medical expenses with values other than receipts and do not report the amount reimbursed;
• Report values and data in the taxable income form other than the Withholding Income Tax (DIRF), made by the paying sources;
• List unrelated dependents;
• Undue deductions from private pension plans (those such as VGBL do not allow income tax deduction).

Default failures:

• Do not report the income received, including termination of employment relationship agreement, where applicable;
• Do not report the income per dependents;
• Do not report the income from rent;
• Do not fill out the variable income earnings form in case of investments in the stock exchange;
• Do not fill the capital gains form when goods and rights were sold for amounts greater than that informed at the purchase.

2020 IRPF: changes in the report

Whenever there are changes in the reporting, it is important to redouble the attention, checking if the novelty impacts the taxpayer.

As of 2020, expenses with the social security contribution of domestic workers should not be reported.

Another novelty this year is the obligation to clarify in the "Assets and Rights" form whether the assets belong to the taxpayer or his/her dependent, informing the CPF related to each listed asset. It is also necessary to inform data such as real estate registration and cars’ Renavan.

The Federal Revenue will also require the number of the receipt of the previous statement for holders and dependents who earned income subject to annual adjustment equal to or greater than BRL 200,000 in the calendar year 2019.

The CNPJs of the banks where the taxpayer has a current account and investments must also be included in the report.

Checking the Statement Processing Statement

Once the report is transmitted, the processing statement can be checked. If any pending issues have been identified, a sign will appear in the " Pendências de Malha" section, where the taxpayer will be able to see if the report remains in the mesh or if there are pending issues that can be resolved by him/her.

It is possible to check the reason that led to the withholding and consult the tax agency guidelines. The taxpayer can regularize his situation by means of a rectification form.

If no error is indicated and the taxpayer has all the supporting documents, he/she can either wait for the RFB subpoena or schedule a date to present the documents and receipts to the agency via Internet.

Your income tax return timely and accurately

Domingues e Pinho Contadores is widely experienced in assisting individuals of different profiles in filling and reporting the income tax return with the Federal Revenue.

Supported by a specialized team, the taxpayer feels has peace of mind that the deadline will be met and most complex fields will be completed, eliminating the risk to file the statement after the deadline or having it withheld in the mesh due to inaccuracies or omissions.