I want to share a story with you. A story about Julie. Recently we met with Julie (not her real name), Julie had a problem, the last tax return Julie lodged was in 2007. Julie was a full-time employee in the medical industry working as semi-professional.
The ATO had sent Julie several letters including "Warning Failure to Lodge", "Lodge Immediately to Avoid Penalties and Audit", "Final Warning - Lodge Now". Julie was very anxious as she had not lodged a tax return for 10 years. She was worried, she thought she may go to jail, She thought she may owe the ATO thousands of dollars, have penalties and interest to pay, and this was just the start of her worry. You see, Julie wanted to get her 10 years of tax returns lodged, but she didn't have all of Individual Payment Summaries plus she had changed employment a couple of times.
It was at this point Julie sought professional tax advice for her 10 years of overdue tax lodgements.
When we met with Julie, we assessed her situation and downloaded her ATO Pre-Filling Report file going back to 2007. ATO Pre-filling reports are the ATO's record of what income tax payers have earned from employment, investments and includes Private Health Insurance Details. What this meant for Julie was no need to request archived copies of payment summaries from her previous employers and we could get straight to work.
Our role as Tax Agents provides us the authority to represent Julie to the ATO. We immediately called the ATO and explained her situation and that she had put her hand up and has sought professional tax advice. We advised of an expected lodgement date and worked hard to make sure we met this deadline and filed the 10 years of overdue tax returns. Identifying opportunities to maximise her deductions.
When lodgement was made, the ATO applied Failure to Lodge Penalties totalling $8500. Due to our clear communication with the ATO, setting expectations and meeting those expectations we were successful in having the penalties remitted in full. $0.
Tax Result. Julie received a tax refund of $13,700.
This is a typical situation with a typical outcome we see when resolving the tax rescue jobs. Although we cannot guarantee your results without understanding all of your circumstances, we can professionally attend to the problem, take the worry away and probably achieve the best result for you from a bad situation.
The result. Julie received a tax refund of $18,500. The ATO applied Failure To Lodge Penalties of