IRPF 2024: start getting organized to ensure compliance when filing your tax return

Proper organization of Income Tax documents and information helps prevent delays and fines 

The 2024 Income Tax season is just around the corner, and to ensure compliance with tax authorities, it is worth starting your preparations right away.

It is important to note that the filing deadline now follows a fixed schedule: taxpayers are required to submit their tax returns to the Federal Revenue Service between March 15 and May 31 each year.

The rules governing this year’s Individual Income Tax (IRPF 2024), which pertains to information that took place in 2023, are yet to be issued but taxpayers can commence their preparations based on past requirements.

Starting this process early is a huge advantage for taxpayers, as this provides them with plenty of time to seek expert advice and ensure their good standing with tax authorities. This is particularly true for taxpayers with more complex demands. Check out other benefits below.

IRPF 2024: why start now?

Planning your tax return ahead of schedule is a way to ensure that, once the filing season begins, you have already gathered all the data, documents and receipts required for fulfilling this obligation.

This preliminary stage helps individuals in selecting the most appropriate type and form (regular or simplified) for their tax returns, allowing them to make the most out of eligible deductions. In other words, effective planning plays a significant role in optimizing one's tax situation. 

Furthermore, filling out tax returns with good care reduces the likelihood of mistakes, thereby averting tax audits and mitigating the risk of missing deadlines, thus avoiding potential fines. 

Another notable benefit is that submitting tax returns early also speeds up the processing of any eligible refunds.

Main data and documents for your IRPF

The list of required data and documents will vary based on the taxpayer’s profile, but it is always worthwhile to examine the main information that must be provided:

Pre-filled tax return

In recent years, the Brazilian Federal Revenue Service has encouraged individuals to use a pre-filled income tax return, which retrieves information on the taxpayers’ identification, address, receipt numbers, dependents' data, paying sources, assets and rights. The pre-filled return also gathers information on earnings and payments reported in various ancillary obligations and payment forms (DIRF, DIMOB, and DMED, “Carnê-Leão”), as well as private pension payments declared in the e-Financeira, real estate sales registered in a notary's office that have been reported in the DOI (Real Estate Transactions), and crypto-assets reported by exchanges, among other items.

However, the import of data is far from enough. It falls on the taxpayer to double check every item and, if necessary, take corrective action with the sources that provided inaccurate information.

Income Tax 2024 made easy

DPC has a dedicated department for individual taxpayers, that provides assistance in the planning, filing, and submission of annual income tax returns, ensuring the adoption of best tax practices. Reach out to our specialized team and get through the 2024 IRPF season with confidence and peace of mind: dpc@dpc.com.br.