Contacted by the ATO about your tax return?

Contacted by the ATO about your tax return?

Receiving a message or letter from the Australian Taxation Office (ATO) about your individual tax return can be worrying, especially if you lodged it yourself or have realised that something may be incorrect. An ATO enquiry does not automatically mean you have done anything wrong. The ATO may ask for clarification or supporting documents, so read the notice carefully and note any response date.

There can be several reasons for an enquiry. For example, the ATO may want to check work-related expenses, income details, private health insurance information or deductions that appear high compared with your income or occupation. A deduction that seems large is not necessarily incorrect, but you should be able to explain how it relates to earning your income and provide evidence where required.

Review the return against your records, such as income statements, receipts and other relevant documents. If you discover an error or omission, don’t ignore it. Depending on your circumstances, you may be able to request an amendment to your return. The appropriate steps can depend on what needs correcting and the ATO’s instructions, so respond accurately and keep copies of your correspondence and records.

If you are unsure how to respond, or think your return may need correcting, professional guidance can help you understand the issue and work through the next steps. Contact us for assistance reviewing your situation and preparing a clear response.

ATO enquiry checklist: If the Australian Taxation Office (ATO) contacts you about your individual tax return, take a moment to review the notice and respond carefully. An enquiry does not automatically mean you have made a mistake; the ATO may simply need clarification or supporting information.

Keep these steps handy:

• Check the notice: Read what the ATO is asking for and note the response date and any instructions.
• Review your return: Compare the details with your income statements, receipts and other relevant records.
• Gather supporting documents: The enquiry may relate to work-related expenses, income, private health insurance or deductions. Be prepared to explain how a deduction relates to earning your income and provide evidence where required.
• Address any errors: If you find an omission or incorrect detail, do not ignore it. You may be able to request an amendment, depending on your circumstances and the ATO’s instructions.
• Keep a record: Save copies of your documents and correspondence, and respond accurately to the questions asked.

A deduction that appears high is not necessarily incorrect, but you should be able to explain and substantiate it where required. If you are unsure how to respond or believe your return needs correcting, professional guidance can help you understand the issue and consider the appropriate next steps. Contact us for assistance reviewing your situation and preparing a clear response.