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How Can I Solve Tax Debts?
Here are some steps to assist in resolving your Tax Debt. In most cases what will be working against you is time, rather than the amount of tax debt you owe. The ATO has a procedure in place for your tax debt, even if you are currently unaware of what that process is, or where you are in their collection queue. We quite often find clients are surprised how far along the collection process they are as the ATO has not contacted them. Therefore our first steps in solving your Tax Debt are:
- Firstly, act early and act fast
- Secondly, understand your outstanding tax debt by employing a bookkeeper or accountant.
- Plus, use a bookkeeper and accountant to help keep up to date with GST Lodgements (if you are GST registered).
- Also, plan your payments – if you have a large tax debt, the ATO may require a lump sum payment before agreeing to further ongoing payments. Ensure you can meet your payment plan without missing a payment.
- Keep track of your tax payments and ongoing taxes – you can obtain a tax portal statement via your accountant or bookkeeper (or call the ato and obtain yourself)
- Be in communication with the ATO – use your accountant to discuss your options with the ATO.
- Keep in communication with the ATO – I know I’ve mentioned this above; however, I cannot impress on this enough. The ATO has procedures for no contact, which includes court judgments and bankruptcy. The ATO debt does not go away. If you are using your accountant to discuss with the ATO, then ensure your accountant is in discussion with them.
- Then, if possible, clear the debt if you are struggling to meet the ATO payment schedule. As if you miss or are late on one payment the ATO agreement will be cancelled, and you will need to re-apply. In most cases, an agreement will not be re-instated unless there are extraordinary circumstances.
- Finally, be pro-active – don’t wait for ATO to be in contact as this could lead to issues with negotiating extended terms. As such, discuss with your accountant the best course of action as this may involve paying out your debt or negotiating suitable terms of payment.
- Call Loan Saver Network on 1300 796 850 for information on the available tax debt loans. Additionally, we offer tailored help with tax debt and are very experienced in solving tax debt problems.