What happens if I don't file my income tax return?

Understanding what happens if you don't file your income tax return is one of the concerns of those who let the deadline pass.

This is because a lot of information is disseminated about this subject, which ends up generating panic.

But are there really any consequences? What are they? Is it possible to resolve the situation? 

If you are going through this situation, and these questions are on your mind, stay calm.

That's because today we can answer your questions through the following content.

So, to learn everything about non-declaration of taxes and resolving the situation, stay with us!

What is income tax return?

Before we start talking about what happens if you don't file your income tax return, it's essential understand about this statement.

After all, understanding what the declaration is will help us understand why it should be made.

The income tax return serves as an annual statement of accounts regarding taxes paid and due.

This means that once a year you must make a list showing everything you paid to the IRS.

The purpose of the declaration is to ensure the conformity of information.

Therefore, the taxpayer must report all taxable receipts and assets.

This way, the government can know whether taxes on these assets and income have been paid properly.

It is worth mentioning that during the declaration, the accounts are rendered, and 3 cases can occur:

• You paid everything correctly, neither more nor less, and you just need to declare it to confirm this;
• You overpaid taxes throughout the year, and filing will earn you a refund.
• The Federal Revenue Service has identified that you have not paid all taxes, so you will have to correct this in your declaration.

It is important to note that filing an income tax return is mandatory for those who reach the mandatory income bracket.

Furthermore, if you have taxable assets, this also requires you to declare them.

But what happens if you don't file your income tax return? Are there any consequences? 

We'll see that next! 

What happens if I don't file my income tax return?

Throughout the previous topic we were able to understand the importance of declaring income tax.

We saw that it is through this that the annual accounting is done.

This way, you can ensure that you have paid everything you owed, avoiding any outstanding debts with the Federal Revenue.

But, although it is important, it is not uncommon for people to fail to file the declaration.

Whether it's due to forgetfulness, low priority given to the matter, or simply not knowing who should declare, the number of people who fail to do so is not low.

As a result, many citizens who are required to declare annually end up not fulfilling their obligation.

And the bad news is that there are consequences for this, because, as we said, the declaration is mandatory.

So, let's now see what happens if you don't file your income tax return.

Late fee 

The first and most common loss for those who delay or fail to file their declaration is the tax.

It is worth mentioning that the fine is the first consequence because it only considers that there was a delay.

This is because there is a deadline for submitting the declaration, but many people end up not being able to comply.

The reasons are diverse, and can range from forgetfulness to system overload that prevents delivery in the last few days.

In order to issue a warning to the citizen, a late payment fine is charged.

The fine is 1% per month on the amount of tax due, and can reach a maximum of 20%.

It is worth mentioning that the minimum fine amount starts from R$ 165.74.

So, if you're wondering what happens if you don't file your income tax return, know that it's going to be hard on your wallet.

Therefore, to regularize your situation you will need to pay the fine for the delay.

So, if you want to save money, the best thing to do is not forget to submit your tax return!

CPF Blocking

Blocking your CPF is a slightly more drastic measure regarding what happens if you don't file your income tax return.

This is because, when the fine is not effective, the IRS starts to crack down harder.

Blocking a CPF (Brazilian Taxpayer Registry) hinders citizens in several ways, such as:

• Open a bank account;
• Obtain financing;
• Issue credit card;
• Enroll in educational institutions;
• Issue passport;
• Take on public office;
• Between others.

In this way, the citizen who has the CPF blocked for not submitting the declaration, suffers serious losses.

It is worth mentioning that this block is not permanent, and only lasts until the situation is regularized.

But be careful: if your CPF has been blocked, it's a sign that your situation with the Federal Revenue Service has already passed the common collection stage.

Therefore, at this point, resolving your issue may become a little more complex.

Therefore, it is important that you pursue it as soon as possible.

Risk of being interpreted as tax evasion 

When someone fails to file a tax return, the information is no longer transmitted to the IRS.

Therefore, it is not possible to know exactly about your taxable income and assets.

As a result, many people end up benefiting, because when the IRS is unaware of a receipt, it cannot collect tax on it.

And the big problem with this situation is that it could be considered tax evasion.

Tax evasion occurs when an asset or income is omitted in an attempt to avoid taxes.

And, although it is something more serious and occurs in more specific and severe cases, the lack of declaration can be interpreted as an attempt at tax evasion.

It is worth mentioning that tax evasion is a crime and carries severe punishments.

Therefore, not declaring and running the risk of this type of punishment is certainly not positive.

So, try to keep your statement up to date.

This way, you won't have to worry about what happens if you don't file your income tax return.

After knowing what happens if you don't file your income tax return: how to resolve it?

After everything we've discussed, you now know what happens if you don't file your income tax return.

As we can see, the consequences are serious and very unpleasant.

Therefore, if you are in arrears, it is important to resolve this as soon as possible.

To do this, the first thing is to know how long the delay is.

If it is more than 5 years old, you will need to go to the Federal Revenue Service in person to resolve the issue.

But, if it is a period of less than 5 years, You can resolve this through the Federal Revenue website.

To do this, simply access the website with your information and complete the declaration process.

After filling it out, the fine for the delay should appear.

With that, simply pay the fine and complete the declaration submission.

This should be enough to regularize your situation and get your income tax return up to date.

See how simple it is to resolve? So, don't waste time and settle your issue as soon as possible!