The Australian Taxation Office (ATO) is the government body responsible for collecting taxes and administering other areas of the tax system.
The ATO audits taxpayers every year to ensure they are paying the right amount of tax. However, if you have received an audit notice from the ATO, it can be stressful.
Here are three ways a tax accountant can help with an ATO audit:
1. Helping You Challenge Your Assessments Before They Go To The ATO
One of the most important things that a good tax accountant can do is help you challenge an assessment before it goes to the ATO. This means that if there's an error or omission in your assessment, it will be fixed before it goes through to finalisation. This means that if there's an error or omission in your assessment, it will be fixed before it goes through to finalisation. This will save time and money as well as reduce stress by ensuring that there's no need for further action from either party.
2. Representing You At The Audit
An ATO audit typically takes place in person at one of the ATO's offices. This is a stressful situation and it can be difficult to keep your cool under pressure when dealing with an auditor who is trying to find fault with your tax return. A tax accountant can represent you at the audit so that they can present your case, show why you have claimed certain deductions, and explain any discrepancies between what the auditor finds and what you have declared on your return. This will make it easier for them to defend your case against any accusations made by the auditor, who may try to claim that there are errors in your return (even if there aren't).
3. Preparing Your Defence Case By Helping Reduce Penalties And Interest Charges
A tax accountant can help reduce penalties and interest charges if any are imposed. They may be able to show that there were mitigating circumstances, such as a family illness or an unexpected financial burden (like bankruptcy), which made it difficult for you to pay your taxes on time. Alternatively, they may be able to point out errors in the way that your tax return was processed by the ATO. This can make it easier for the auditor to understand why you had problems paying your taxes on time and give them a better idea of how much money you owe or how much relief you receive.
An ATO audit can be a stressful and overwhelming experience for anyone. A tax accountant can help you with an ATO audit by representing you at the audit, preparing for the audit, and acting as an advisor after you have received your notice of assessment.Share