Late Lodging Your Tax Return? The ATO is on the Case.

The ATO recently announced their intention to persue late lodgers (2009 and prior year tax returns):

On 2 December 2010 the ATO stated that "if the overdue returns were not lodged by 13 January 2011, the clients could expect default assessments to issue based on the taxable incomes included in the letter." 


Taking into consideration the Christmas shut down of many tax practices, the ATO has graciously extended the lodgement deadline to 17 February 2011.

Any taxpayer who has received one of these letters MUST act on it ASAP.  If the overdue returns are not lodged by 17 February 2011 deadline, these taxpayers can expect default assessments based on the taxable income stated in the letter together with any applicable administrative penalties.

Let me assure you, any affected taxpayer won't be happy with the penalties. I also expect there will be little scope for remittence of such penalties - ie. don't expect the ATO to be flexible in these circumstances.

WHAT TO DO?

If you are late lodging tax returns here are some suggestions:

1.  If you agree with the income stated in the letter - submit a tax return ASAP.

2.  Even if you don't have all available information, submit a tax return ASAP - tax returns can be amended up to two years after the assessment issued.

3.  If you feel you won't be able to meet the deadline, contact a local tax agent ASAP - if there is a reasonable excuse, they may be able to extend the deadline. However, it may be easier to submit the return and amend later.

4.  The ATO's eTax system is only available for the current year (2010). However, there are several online tax return preparation sites that have access to prior year lodgments - for example, 2009 and 2010 tax returns are available on our online site here.

5.  Don't panic.


Copyright 2014. My Tax Zone.