Missed a tax deadline or simply didn’t have time to get it done? Whatever the reason you fell behind, ITP The Income Tax Professionals can help! The good news is, it’s not too late. ITP can help you ease your way through the process and lodge your tax return with the ATO stress-free.
Penalties
The ATO night impose fees and penalties for late tax returns. The ATO’s ‘failure to lodge on time penalty’ (FTL) is calculated at the rate of one penalty unit for each period of 29 days that the tax return is overdue. There is a maximum of five penalty units applied for a small entity.
A medium entity will incur a multiplication of two. A medium entity is an entity that withholds PAYG or has an assessable income or current GST turnover or more than $1 million and less than $20 million.
A large entity, which is an entity that withholds PAYG or has an assessable income or current GST turnover of $20 million or more, will have a penalty multiplied by five.
A significant global entity will increase the penalty rate by five hundred. FTL penalties for significant global entities apply to an entity that fails to lodge an approved form required to be given at a date that is on or after 1 July 2017.
Penalties will be applied if you have more than one outstanding tax return, have a poor lodgement history or you haven’t complied with the laws governing lodging a tax return.
Pro Tax Tip: If you owe no tax or are entitled to receive a tax refund, the ATO typically does not apply a penalty.
ITP Tax Accounts have lodged late or prior year’s tax returns successfully without penalty! In some cases, where penalties have applied, our Tax Accountants were able to reduce the penalty or negate it altogether. ITP regularly liaise with the ATO and will work with both parties for the best outcome.
Do I Need To Lodge A Tax Return?
If you earn over $18,200 annually, you’ll need to lodge a tax return. If you earned below that amount and didn’t pay tax, you’ll still need to lodge a tax return as you may be entitled to government benefits you might not otherwise receive. In this case, you’ll need to lodge a ‘non-lodgement’ advice to the ATO, which will ensure you don’t have an outstanding record or tax return.
How Do I Lodge My Late Tax Return?
We can check to see if you have missed any tax returns and your lodgement status. Registered tax agents have access to tax records that most cannot access through direct portals with the ATO. You’ll just need to tell us your Tax File Number (TFN) or your Notice of Assessment or ATO reference number when you call.
We’ll also need to know if you have just the one outstanding tax return, or multiple that you need to lodge. Our Tax Accounts will check your income statements with the ATO for the year/s of your outstanding tax refund and look for any tax debts you may have.
From 2001 onwards, our Tax Accountants can access your employer payment summaries, bank interest income, dividend income and private health insurance information. Our standard tax return fees will apply.
Your tax claims can be made as normal. You will need to do the work and find all of your receipts if you can, otherwise our Tax Accountant will used the data we have access to. ITP Tax Accountants will advise what claims you can and can’t make and will work hard to maximise your outstanding years tax refund. Generally, the more work-related expenses you can claim, the more of a tax refund you will receive.
If you need to lodge a non-lodgement tax return, we’ll do that on your behalf once we have calculated your details. We’ll help you work out if you need to get a superannuation co-contribution or family payment, such as an education tax refund.
Pro Tax Tip: Keeping your tax return up to date will also mean that you will catch up with other entitlements, such as your superannuation payments and family tax benefits.
Fees
Our standard tax return fees will apply. You can take advantage can have our fee taken out of your tax refund.
Late Tax Refunds can take as little as 12 working days to be processed by the ATO. Appointment for late or prior year Tax Returns can be done face-to-face, via Zoom or over the phone.
ITP Tax Accountants will have access to your prior year’s tax history and records. Lodging your late or prior year’s tax return will be quicker, with refunds paid sooner. If you incur a tax debt, and ITP Tax Accountants will liaise directly with the ATO on your behalf to mitigate fees and penalties or work out a payment plan. Having 50+ years experience in handling the tax affairs of Australian individual and businesses, ITP Tax Accountants have specialised skills and knowledge to help you through the process.
Have questions? Our FAQ’s might help.
Click here to book an appointment, or phone 1800 367 487 and chat with one of our friendly Tax Accountants today.