We have noticed an uptick in the number of ATO notices being issued, they are critical and it is important to deal with them as soon as you receive them.

Receiving a debt collection letter from the Australian Taxation Office (ATO) can be concerning, but it’s important to handle it promptly and correctly. Here’s what you should do:

  • Do you have late lodgments?: Get them up to date as soon as possible, it is almost impossible to get them under control if you have late lodgments.
  • Check if they are accurate: First, ensure that the debt is legitimate. Check your own records and compare them with the details provided in the letter. Sometimes, mistakes can happen.
  • Respond Promptly: Ignoring the letter is not advisable as it could lead to further action from the ATO, including penalties. Respond to the letter by the deadline provided, and we recommend that get ahead of the correspondence as different areas of the ATO do not always communicate with each other in the same manner.
  • Understand Your Payment Options: If you’re unable to pay the full amount immediately, the ATO may offer payment plans, these are contingent on your compliance history and your viability, we will walk you through what is required.
  • Keep Records: Keep a record of all communications with the ATO and any documents or correspondence related to the debt. This will be useful for future reference.
  • Understand Your Rights: Familiarise yourself with your rights when dealing with debt collectors. The ATO is required to follow certain rules and procedures. Remember that there is a person on the other end of the phone, a small amount of politeness will get you a long way.
  • Regularly Review Your Tax Affairs: To prevent future issues, regularly review and keep your tax affairs in order. Ensure that you file your returns on time and keep accurate records. Once we have worked with you, we will assist in having a compliance strategy for you to ensure that your tax affairs are under control.

If you have any doubts or questions about the debt, directly contact the ATO. They can provide more details about the debt and how it was calculated.

If the debt is large or complex, we are here to help, we have years of experience helping businesses deal with their outstanding debts. The processes of the ATO have changed over the last few years and we will assist you in managing the process.

Remember, dealing with such matters can be stressful, but taking proactive steps and seeking professional advice can help in effectively managing the situation.