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NSW ATO Refused Proposed Tax Payment Plan - What to Do?

Discussion in 'Debt and Bankruptcy Law Forum' started by mah, 26 August 2016.

  1. mah

    mah Active Member

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    Hi,

    I have a tax debt due to not lodging my tax return for years and ended up with $200, 000 tax debt for 10 years. 140, 000 tax and the rest of the interests and penalties. I proposed to the tax office to pay $ 30, 000 upfront and $3000 per month.

    My income before tax $130, 000/year. I have to kids and a wife who is not working. The ATO refused my proposal and refused to remit penalties and interests.

    Any help?
     
  2. Victoria S

    Victoria S Well-Known Member

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    As I understand it you can continue to negotiate with the ATO and try to persuade them to accept your payment plan and to remit the penalties. I believe you need at least 25% down payment though - perhaps $50,000 up front if that's possible.
     
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  3. settle

    settle Well-Known Member

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    Tax debts can be reduced and ATO can agree to a payment plan, the key is provide the right paperwork to support your payment proposal.
     
  4. settle

    settle Well-Known Member

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    Interest and penalties can be ultimately remitted and reversed
     
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  5. mah

    mah Active Member

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    Thank you. How I can prepare the right paper work?

    Any help?

    Regards.
     
  6. settle

    settle Well-Known Member

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    Accountants can help you prepare the paperwork. But make sure your financials are up to date as they will need to be presented to ATO. Get access to your intergreated account to see how much interest and penalties there is on the system to get remitted. Write a strong letter to ato to review your case.
     
  7. mah

    mah Active Member

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    Ok, how I contact you to help me? as my accountant didn't succeed with them I lodged all tax return up to 2015 and what you mean strong letter?

    Thank you.
     
  8. settle

    settle Well-Known Member

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    The letter has to include why the ato should agree with you, you need to provide a 'reasonable arguable position' for them to work on your side
     
  9. mah

    mah Active Member

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    Is tax debt interest tax detectable?
     
  10. settle

    settle Well-Known Member

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