Income taxes: find out what they are and avoid the most common mistakes made by taxpayers

The deadline for submitting the tax return has begun and will expire on May 31st. Taxpayers filing paperwork should pay attention to federal tax rules.

The process is essential to maintain a regular tax situation and avoid complications with the tax authorities. Therefore, it is good to know what the main mistakes made by taxpayers are to avoid them, and thus avoid future headaches.

Isabella Gomes, professor of Tax Management at FECAP and partner of Athros Auditoria e Consultoria, listed some of the mistakes that can cause taxpayers to fall. Among the most common are:

• Typing errors;
• Failure to communicate tax return data;
• Omitting your own or your dependents’ income and source of payment;
• Inform the same employee in multiple statements;
• Non-deductible or undocumented medical expenses;
• Confusing PGBL with VGBL;
• Update the value of assets;
• Tenant who does not declare the rent paid;
• Failure to purchase and sell goods within the same year;
• Change in assets incompatible with income;

“To avoid these errors, review the declaration. It is a good idea to also review the values ​​entered, because sometimes there are typos,” he advises in an interview with Earth. “Check the documentation you have at hand, having a history of everything that happened during the year between purchases and sales, income and expenses, and also cross-reference the declaration of the owners with those dependent on them, to see if everyone has correctly reported the correct operations within each CPF”.

«And, finally, interpret the tax return as a static position, a snapshot of what happened in the taxpayer’s fiscal year. Everything he has in terms of assets and rights, for example, must originate within his own declaration. Either he had income or he was in debt. All expenses must have documentary support. So with this philosophy, let’s call it this premise, it becomes easier to escape errors and avoid falling into thin lines.”

Who must declare income tax

• Citizen residing in Brazil who has received taxable income exceeding R$ 30,639.90, including salaries, social security benefits, pensions and rent. The previous year the established amount was more than R$28,559.70;
• Anyone who has received income that is exempt, non-taxable or taxed exclusively at source, the amount of which exceeds R$ 200 thousand;
• Citizen who has obtained, in any month, a capital gain from the sale of goods or rights subject to tax;
• Possession or ownership of goods or rights with a total value exceeding R$ 800 thousand until December 31st;
• Anyone who has traded on stock exchanges, commodities, futures and the like;
• Obtained annual gross revenues from rural activities worth more than R$ 153,199.50. Previously, the established value was R$142,798.50;
• Anyone who intends to compensate the losses deriving from the rural activity of the current or previous years with the income of the present or future years.

Documents necessary to submit the tax return

Before making the declaration, the most important thing is to organize all the necessary documents and evidence to facilitate the task. This applies to both beginners and those more experienced in the process.

The taxpayer must have their identity card, CPF, voter ID, proof of residence and income information ready, as well as the name and CPF of their spouse and dependents, if applicable.

How to file your tax return

Taxpayers will be able to file their return through the My Income Tax program and the application made available by the Federal Revenue Service and online on the e-CAC portal. Access is available to any citizen with a Gov.br account.

In the system it is possible to consult all the declarations submitted by the taxpayer, check pending matters, issue a copy of the declaration and delivery receipt, consult debts and issue the DARF, among other income tax-related services.

The taxpayer can also choose the option to send a pre-compiled declaration. In this case, you must have a Gov.br account with a Silver or Gold level. However, it is important to review all data and correct any errors before submitting documentation.

What happens if I don’t declare income tax?

If the declaration is not submitted on time, the taxpayer receives a fine equal to 1% per month of the tax due, with a minimum value of R$ 165.74 and a maximum of 20% of the tax due. The registrant may also face restrictions on his CPF until the document is delivered.

Upon submission of the return, along with the delivery receipt, the notification of initiation and the Federal Revenue Collection Document (DARF) of the late fine will be generated.