2020 has been a tough year for everyone. The pandemic has ravaged people and industries all over the world. With so much going on, it can be difficult to juggle our tasks and responsibilities. In this blog, we'll specifically discuss tax obligations.
Throughout this year, we've seen the government intervene with stimulus packages for both employees and employers, including the general economy. With so much going on, some people may have had their lodging of tax returns slip their mind. We'll give you 4 tips that relate to missing tax lodgement deadlines.
Better late than never
This is very important to get around. If you are already late, we recommend getting on top of lodging your tax returns as soon as possible. Some may think that it's already passed the deadline, so it can wait just a little longer. If a payment is missed, there may be consequences from the ATO. By continuing to delay and leaving it for too long, you run the risk of a failure to lodge penalty which can total a maximum of $1,100.
Discuss a payment plan with the ATO
If you're hesitating to lodge your tax return because of the amount payable, you may want to consider speaking to the ATO directly. If you're transparent about what is happening, and you've lodged your return in good faith, the ATO should be willing to discuss a tax payment plan with you.
Keep in contact with the ATO
If you are late in lodging your tax return, the ATO will attempt to contact you. It is advised that you keep in regular contact with the ATO to keep them in the loop. Avoiding calls and emails is not recommended, and may lead to further action from the ATO.
Extension application through an accountant
Whilst individual tax returns are due 31 October each year, if you lodge your tax return through an accountant, you may be eligible for an extension. This is not guaranteed and is subject to your lodgement history, and is ultimately at the ATO's discretion.