Tax alert! The IRPF 2024 microgrid will be enhanced

Fell in Thin mesh Income tax is an undesirable situation by any taxpayer. This term is commonly used to refer to the process by which the Federal Revenue Service seeks to conduct a deeper analysis after finding a discrepancy between declared information and data provided by other entities.

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In its 2023 IR announcement, the agency identified 25,126 individuals who own bitcoin and did not declare the asset in the document. Each of them had at least 0.05 Bitcoin, equivalent to about R$10,000, for a total of about R$1.06 billion in unreported income.

Underlying causes

Failure to own cryptocurrencies is just another situation that leads Brazilians to fall into a tax trap, putting them at risk of being fined and suffering other penalties. According to the IRS, 3.1% of the total number of people who reported to Liao last year fell into the fine net, the main reasons are:

• Erroneous deductions (such as medical and other expenses);
• Omission of income (yours or your dependents);
• The difference between the tax declared by the taxpayer and that reported by the source of payment.

Of the total number of blocked returns, 58.1% had incorrect deductions, 42.3% of which were related to medical expenses. In such cases, the taxpayer may have attempted to obtain a deduction by declaring expenses not permitted by law or without having any way to prove the expenses.

Self-regulation without fines

In a memo regarding documents that fell through the cracks for non-reporting of bitcoin, the IRS stated that it is “considering measures to encourage self-regulation of data reported in the past year” to encourage regulation “without imposing fines due.” In the event of opening tax procedures.”

To do this, the agency will have to inform taxpayers of the need to amend their 2023 IRPF returns, allowing them to submit a correction document. According to the tax authorities, anyone who has bought more than R$5,000 in virtual currencies or owns a similar amount is obliged to report this investment, even if the asset is in the custody of a third party.