Hello! Welcome to ORGATEC’s channel. Stay tuned, as the deadline for submitting your 2025 Individual Income Tax Return is approaching! Starting in March, you will be able to submit your tax return to the Federal Revenue Service (Receita Federal). But be careful: any mistake could take your tax return into the dreaded tax audit (“malha fina”)!
Essential General Precautions
To avoid issues with the Federal Revenue Service, it is essential to correctly report all your income, carefully review each piece of information, and avoid common mistakes that could delay your refund or even result in penalties. The Federal Revenue Service is increasingly automated and cross-checks data in real time, so accuracy is crucial.
Main Errors That Led to Tax Audits in 2024
In 2024, the main reasons taxpayers faced tax audits were:
- Incorrect deductions (57.4%): The highlight here is medical expenses that were unconfirmed or nondeductible.
- Omission of income (27.8%): Failing to declare your own income or that of your dependents.
- Discrepancies in Tax Withheld at Source (9.4%): The amounts declared must match those reported by the paying sources.
- Incentive deductions (2.7%): Donations to social funds must follow the correct regulations.
- Accumulated Income Received (1.6%): Differences in these earnings may attract the Federal Revenue Service’s attention.
- Income Tax paid during the year (1.1%): Amounts reported in the “carnê-leão” or additional tax payments must be accurate.
Essential Tips to Avoid Problems
Follow these essential tips to avoid the “malha fina”:
- Review all information before submitting.
- Do not include dependents in more than one tax return.
- Record all income, including that from dependents.
- Report only allowed deductible expenses.
- Ensure that the values of Tax Withheld at Source are correct.
Attention for Those Who Left Brazil
If you have permanently left Brazil, you still need to submit your definitive exit income tax return to avoid future tax issues.
File Your Return with Confidence!
Organize your documents in advance and file your return with confidence! If you need help to ensure your return is 100% accurate, count on ORGATEC.
See you next time!