The IRS increasingly controls the accounts of Poles. mistake in this paper means immense penalties

Can a household donation mean fiscal problems? Many Poles inactive believe that the transfer of money between loved ones is completely safe and does not require formalities. meantime Tax offices are increasingly analysing bank accounts flowsand even A tiny donation may service as a basis for imposing a advanced penalty. Everything is broken by 1 document, the absence of which may mean Giant financial sanctions.

Family transfer? Fiscals can claim tax

Theoretically transferring money within the immediate household (e.g. between parents and children or siblings) may be exempt from donation tax, but only on 1 condition: the transaction must be reported to the taxation office and decently documented. That means that if individual receives even PLN 10,000 from the parent, and does not study it to the IRS, may in the future receive a taxation call with interest.

For larger donations tax control may consequence in a sanctioned taxation rate which reaches up to 20% of the value of the amount transferred. By comparison, in standard cases the taxation rates on donations have so far varied from 3% to 20%, depending on the degree of kinship and the amount.

This paper is key. His absence means trouble

To avoid problems, any major donation should be submitted to the taxation office on the form SD-Z2. This is the document. exempts from payment of taxation in the case of donations from the closest family. The submission of the form is simple, but requires a deadline – should be done within 6 months of receiving the donation.

Importantly, the notification must be backed by proof of bank transfer. This means that donations made in cash do not benefit from a full taxation exemption. So, if individual would alternatively hand over money in cash to their loved ones, they should be able to control the taxation and hazard imposing taxes.

The banks work with the tax. IRS knows more than you think.

Not everyone realizes that tax office has wide access to bank data of Poles. Banks are required to study suspicious transactions, and any larger sum in the account may rise interest in the IRS. In practice, this means that persons who They hope that the taxation “will not notice” the transfer from the family, they may be very surprised..

A fewer years. The National gross Administration (KAS) has tools for fast analysis of bank transactions, which means that officials may at any time request clarifications on undocumented payments. If the taxable individual does not supply the requisite evidence, may be subject to a advanced financial punishment of up to 20% of the transaction value.

Donations under the microscope. How to avoid problems with the IRS?

Experts advise that do not underestimate the provisions on donations, especially since the IRS is increasingly analyzing bank accounts of Poles. Here are any key principles that will aid avoid unpleasant consequences:

• Each donation from a close household should be reported on the SD-Z2 form, even if the amount appears to be small.
• The safest form of money transfer is simply a bank transferwhich is the authoritative proof of the transaction.
• Donate limits must not be exceededIf we want to avoid the tax. In the case of donations from persons outside the immediate household there are importantly lower free amounts.
• It is worth keeping credit card confirmations and papers confirming the origin of moneyBecause the taxation office can ask about them even after a fewer years.

Come on. donations within the household are exempt from tax, it is only subject to appropriate notification. The IRS is increasingly analyzing the bank accounts of Poles and imposing severe penalties on those who They forgot the formalities or hoped that the taxation would “not notice” the transfer. To avoid problems, it is worth remembering to make any major donation, and to transfer money only electronically.