What is Federal Revenue Fine Mesh?

A Thin mesh is the procedure in which the IRS checks if there are inconsistencies in the declaration of the Income tax, that is, it is a review of the information declared by the taxpayer, in order to identify possible errors.

In addition to this verification, the fine mesh system also compares this data with other information available at the Federal Revenue to explore each statement in detail. The entire procedure is performed electronically.

If, during this verification and data crossing process, the system identifies errors in completion or inconsistency in the information presented, it separates the declaration for an analysis more accurate.

If the error persists, the taxpayer may be investigated or called upon to make adjustments, and fines may even be charged. Any incorrect or omitted information causes the declaration to fall into the fine mesh, and may characterize a violation of tax legislation.

situations

The three most common situations in which the declarant ends up entering the fine mesh are:

• Non-deductible medical expenses: as there is no value limit for the deduction of health expenses, often the declarant increases the amount of these expenses, or includes expenses of people who are not your dependents, such as deductible.
• Omission of income from dependents: when a father declares his son as a dependent, for example, he needs to include in the income tax return all the information referring to him, and not just the expenses. In this way, it is also necessary to inform when the dependent receives some type of payment, such as alimony or internship aid.
• Official or private pension deduction: in the context of social security, all annual expenses are considered deductible. Therefore, this also applies if the declarant pays the pension for the dependents.

Other frequent reasons for falling into fine mesh are:

• Inclusion of non-deductible education expenses;
• Failure to receive rents;
• Omission of wages from previous jobs;
• Difference between declared values ​​and those reported to the Federal Revenue Service;
• Inclusion of dependents incorrectly;
• Deduction of donations;
• Do not report income received during the year;
• Release the same dependents when the spouses declare separately.

To get out of the fine mesh, it is usually enough to hand in the rectifying declaration to correct the declared errors. However, rectification is only valid if the Revenue has not yet notified the taxpayer to provide clarification.

The fine is only applied when the Income Tax has not yet been paid. If the Revenue understands that the declaration has errors, and that the taxpayer did not try to correct them, the amount to be paid is 75% of the tax amount plus interest.