understand how the IRS monitors transfers via Pix for family members, like your mother, and what precautions to take to avoid problems with the income tax, including the characterization of donations and possible penalties.
*ATTENTION! THIS ARTICLE WAS WRITTEN BEFORE THE REPEAL OF THE PIX MONITORING LAW BY THE MINISTER OF FINANCE FERNANDO HADDAD*
O Pix brought practicality to sending money, but also caught the attention of IRS for undeclared financial transactions. Any significant transfer of funds may be interpreted as taxable income ou donation, depending on the context.
Frequent or high-value transfers to family members, such as your mother, may be monitored. This does not automatically mean that you will be charged income tax, but the IRS has specific criteria to determine whether there are amounts that should be taxed.
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Donations or Income? Understand the difference
The IRS distinguishes two types of movements between family members:
- Donations: Values sent without consideration. They are subject to the state ITCMD (Tax on Transmission Causa Mortis and Donation), and not to the income tax.
- Taxable income: If the amount is disguised remuneration, such as regular payments for services, it can be classified as income and taxed on income tax.
Practical example
If you transfer R$2.000 monthly via Pix for your mother to help her with expenses, it can be considered donation. However, if these amounts are recurring and high, the IRS may question the origin and nature of the money, applying the ITCMD in accordance with the state rates.
If your mother provides some service or works formally for you, the values can be interpreted as taxable income, requiring tax withholding.
How to avoid income tax problems?
To avoid falling into thin mesh, follow these practices:
- Declare donations on your income tax: If the donation exceeds the exemption limit, it must be reported in the specific field of the declaration.
- Use separate accounts: Avoid mixing accounts personal and business, as this may confuse the inspection.
- Document the transfers: Describe the purpose on the receipt Pix and keep records of movements.
- Avoid unjustified high movements: Large amounts may raise suspicions.
The monitoring of Pix from IRS does not seek to penalize transfers to family members, but to ensure that significant amounts are declared correctly. The key to avoiding problems with the income tax is transparency and proper recording of every move.
In short, now the big part is coming
Negative. I have received amounts much higher than 2000 or 5000 from my mother, the IRS never bothered me and I never declared income tax, I am unemployed.
That was in the past, right? Genius!