Fine mesh: what to do to settle it

The Federal Revenue Service (RFB) has received almost 32 million 2020 income tax returns within the deadline, which ended on June 30. On the following day, July 1, the agency already reported that 1,015,918 Brazilians had fallen into the fine mesh by then.

The taxpayer who had the report withheld, now needs to organize himself to settle the situation. In this year, the process brings something new: due to the coronavirus pandemic, everything can be solved online, avoiding traveling to the RFB’s facilities.

Using a Digital Certificate (e-CPF) enables the taxpayer to have even more use the RFB website to solve their pending issues with the tax authorities.

The failure to provide information on income and issues with deduction were the main reasons for withholding the IRPF 2020, as the tax agency itself announced.

The data cross-checking of the electronic system compares the data provided by the taxpayer with those sent by the employer, health professionals and other payment sources to the individual, identifying inaccuracy in a quick and precise manner. The RFB processes the file as soon as it is received.

Therefore, annually, before the statement is filed, it is important to prepare for its filling, avoiding the most common errors and omissions and paying special attention to the requirements of that calendar year.

How to check if the report fell into the fine mesh

It is possible to check if the report is in the tax mesh at the RFB's Virtual Service Center (e-CAC).

For the safety of the consultation concerning the processing of the statement, an e-CAC access code is required, which can be generated here.

The taxpayer must inform the CPF, the date of birth and the numbers of the income tax return receipt of the last two years. A password must also be created to access the private individual's restricted area features.

Taxpayers holding the e-CPF can access e-CAC with no requirement to create an access code.

Retained report: how to settle the pending issues

In case of identifying flaws in the report, the tool informs the issues that must be corrected by means of a rectifying report or by sending additional documents, such as receipts and proofs.

It is unnecessary to wait for a subpoena to decide on the items that have caused the retention.

In case of inaccuracies or incomplete information, it is possible to anticipate presenting a rectifying report. However, it is not allowed to rectify the declaration after having received a summons to provide clarifications to the RFB.

This time, the complementary documents can be filed by electronic service in pdf format.

The virtual document forwarding service can be used both to bring forward the provision of documents for the analysis of the retained statement and to submit documents that have been requested through a subpoena.

The statement is correct, but was retained in the mesh fine?

If the taxpayer is certain that the report is accurate or does not contain omissions and, in addition, has all the documentation related to the provided information, it is necessary to wait for notification for the necessary clarifications or to make an Anticipation of Mesh Request with e-CAC.

However, the Anticipation of Mesh Request for the IRPF 2020 will be available for scheduling only from January 2, 2021.

Corroborative documents

Documents such as those listed below must be kept for up to five years, during which time clarifications about the report may be requested.

• Income report
• Vouchers used for health and education deductions
• Proof of alimony payment
• Proof of rent (payments or income)
• Inheritance received in the period
• Donations made or received in the period
• eSocial of domestic employees
• Loans and financing
• Evidence of purchase and/or sale of shares

That is, even after the statement is filed, the organization remains the taxpayer’s ally.

Expert support to be up to date with the tax authorities

Domingues e Pinho Contadores supports individuals of different profiles in meeting the requirements of the Federal Revenue of Brazil.

Contributors who have previously identified the need to present a rectifying statement or have faced complementary demands from the agency can count on the support of the DPC team to assess the case and settle the situation. Get to know the DPC’s service to the Individuals.