I Just Received A Tax Bill from ATO; Now What?

If you receive a tax bill from the Australian Taxation Office (ATO), it means that you have a tax debt that you need to pay. Here are some steps you can take to deal with your tax bill:

Step 1: Don’t Panic – Obtaining a tax bill from the ATO is a regular occurrence, even if you are a responsible taxpayer. It just means that you still owe unpaid taxes based on the government ATO computation due to amended policies and discontinued exemptions, among other things. It is not yet a problem, nor will it affect your credit rating at the moment of receipt.

Step 2: Check The Accuracy Of Your Tax Bill – If you do your taxes, log in and access your ATO online services to review your tax account details, your income, deductions, credits and payments. You can also contact the ATO to request an amendment or lodge an objection to the tax bill if you find any errors or discrepancies.

Step 3: Pay Your Bill ASAP – After verifying that the resulting computation in your tax bill is correct, pay your tax arrears immediately to avoid accumulating interest charges and penalties. The longer you delay, the more you will owe the government. It doesn’t matter if you pay your bill online, by phone, mail or in person; just make sure you pay before the deadline.

Step 4: Contact ATO If You Can’t Pay In Full – If you are short on funds, don’t hesitate to call the ATO to discuss possible payment options. You may be eligible for a payment plan like instalment options, apply for hardship relief to reduce or waive any interest and penalties, or even defer your payment due date.

Step 5: Seek Guidance From A Tax Specialist – a tax professional can map out your best options for managing tax debt by explaining your rights and obligations, representing you in dealing with the ATO on your behalf or referring you to other sources of support.

Step 6: Apply for a Tax Debt Loan – Ensuring you have enough funds to pay your outstanding tax debt should always be your priority. And if you don’t have enough funds, your surefire option will be to secure funding via a tax debt loan. This move will free you from needless worrying about interest payments and penalties you will incur if you delay your payment.