Already lodged your tax return? Don’t forget the review step
• ATO, lodgment, post-lodgement,
Many individual taxpayers are keen to lodge their tax return as early as possible. However, lodgment doesn’t necessarily mean the process is over. Clients may receive additional information after lodging, discover records they thought were lost or realise something was omitted from the original return.
The ATO notes that individuals and sole traders can request an amendment where they have made a mistake, forgotten to include information or experienced a change in circumstances after lodging their return. Amendments can generally be requested online, by paper, through a registered tax agent or by letter.
Common post-lodgment issues
The types of issues clients may identify after lodging include:
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income statements, dividend statements or interest summaries that were not available at the time of lodgment;
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receipts, records or substantiation documents that are located later;
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omitted income or deductions;
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discrepancies between the lodged return and the client’s own records.
Many of these situations arise because information becomes available after a return has already been lodged, particularly where clients have lodged early in the tax season.
Advisers may be the first point of contact
Clients often discover additional information and then delay acting because they are uncertain whether the issue is significant enough to matter. In many cases, the immediate question isn’t how to amend the return, but whether an amendment is actually required.
Where a client’s return was lodged through a tax professional, timely communication is important. Advisers may wish to encourage clients to pass on any new information as soon as it becomes available so that the issue can be reviewed before assumptions are made about whether it is relevant.
Practical considerations
If a client identifies a possible error or omission after lodgment, a sensible approach is to:
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obtain all relevant information relating to the issue;
- retain supporting records and documents;
- review whether the information affects the lodged return; and
- seek advice before deciding whether to request an amendment.
The ATO indicates that taxpayers should generally wait until their original tax return has been processed before lodging an amendment request.
A useful reminder at tax time
The key message for clients is that lodging a return does not necessarily prevent later corrections. Tax returns can generally be amended where mistakes are identified or additional information needs to be included after lodgment. For advisers, this is a useful opportunity to remind clients that early communication is often the most important step. In many cases, a short discussion is enough to determine whether new information is likely to affect the return or whether no further action is required.
Source: www.ato.gov.au/individuals-and-families/your-tax-return/amend-your-tax-return