What Happens If You Don’t Lodge Your Tax Return On Time?
Individual Taxpayers are Australians and Australian Residents who earn over the tax-free threshold of $18,200. Those who earn more than that are required to submit an income tax return annually to the Australian Taxation Office (ATO). Failing this, the ATO has procedures in place to ensure taxpayers meet their Australian Tax obligations.
Here is what will happen if you fail to lodge your tax return:
What can you do about interest and penalties?
- Try to remit the interest, provided your interest has not exceeded $25,000. You can do this by phone, providing all your details and reasons why you do not have the funds to make your payments.
- Write a compelling letter in which you explain the reasons and the position in which you are unable to pay the interests incurred.
- Work with the ATO by using the BAS Agent Portal or the Tax Agent Portal, provided you are a registered agent. Moreover, if you merely communicate with a fair and reasonable attitude, you may be surprised at the fairness of the department.
If you are still having difficulties and have not received any satisfactory advice from the ATO, or if you’d like to receive advice before you begin communication with the ATO, you should consult with a professional tax accounting firm. Contact Stones Sharp, an experienced CPA accounting firm today!
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