Hi accountants of OzBargain!
We all know that accountants can get you out of a fine by sweet talking the ATO. But what exactly does that involve? Sure, a mere mortal could have a fine or two cancelled. But is it possible for an unqualified person that talks the talk to achieve the same hit rate?
Is there a secret handshake involved? The Art of the Deal? Sexual favours? Blackmail? Or is just good ol' fashion promises to keep in line?
Yeah I was thinking the same thing.
I don't want to leave here empty-handed though. Maybe there's an example where only an accountant can get the fine waived. Much like only an accountant can access really old pre-fill.
The only area where I'm aware of being a black-and-white difference in requirements between a private individuals and certified accountants is in tax return lodgement date cut-offs. From memory (and it could've changed since), accountants get more time to lodge tax returns. Everything else is… vague and again, really relying on the accountant's expertise, experience and general judgment (if they're good).
Yeah I was aware of that one as well. Thanks for replying.
I reckon an accountant is planning a reply but they're just getting the invoice ready :)
What Does Waiving an ATO Fine Involve?
(1) pick up fine notice .
(2) hold notice up in the air.
(3) sweep hand from left to right moving just the forearm.
My notice flew away…. now what?
I am no longer a tax accountant but used to be. We used to get the new graduates to get the fines and interest waived. It's very very easy. Ring the ATO (number is probably on the notice). If you've always lodged your tax and paid on time in the past then tell them that. If there were some circumstances that happened this time which resulted in you lodging late, let them know (they will not verify these circumstances so get creative).
Just come up with a convincing reason as to why you want the fine waived. And why it's not going to happen again. if they refuse (which is unlikely) then hang up and try again.
Haha. I always complain when I ring up a bank or telco and they don't record notes from our previous conversations. But obviously there are advantages to this incompetence. Remind me of the "Do you know who I am?" ad: https://www.youtube.com/watch?v=yA4aRrbKsH0
Just claim severe financial hardship and they will just about always remit the fine.
/r/2me2irl
Yeah, I imagine they don't have much choice over someone with very little prospects to recover.
I wish you could get accountants to remit the bill.
Helps the ATO is currently being grilled over being too harsh by about three separate departments…
the main difference is the tax office deals with tax agents every day. and they're more likely to remit a fine, or listen to our story as we act for hundreds of clients. there is an implied relationship between the two parties.
when an individual tries to get the fine remtited, it may be more difficult as the ATO 'has heard every excuse under the sun'.
that is probably the gist of it.
what was the reason for your fine and how much was the fine.
Thanks Nicole. Makes sense.
I've never been fined (as yet) but I always hear these stories so I just wanted clarification.
I have lost a group of receipts from 10 years ago, at least one of which is irrecoverable (no bank statement or even the name of a tradie) and is meant to be deducted over 40 years. I can't necessarily blame the loss on a disaster either (no fire; water damage may have contributed to its disappearance but not with certainty - since it's "lost" in my absence). The only evidence is an old H&R Block tax preparation that had all the ongoing calculations for depreciation and capital works.
I now know that digital is OK with the government so will be backing up old files in as many places as possible. I was surprised that you need to keep all documents you've ever claimed on until the day you sell your investment (plus 6 years or whatever!). I wonder how papers have kept since 1985…
If it is a late lodgment penalty, an accountant can blame themselves for the fine, explaining that their workload was very high, or they have staff shortages etc. The ATO will always remit a penalty on those grounds, as it is not the taxpayers fault. If you are late yourself without a tax agent, then there is only yourself to shoulder the blame.
Depends on the reason for the fine - Your chance of successfully requesting a remission should be as good as a tax agent if you say the right things.
I've got penalties remitted for a lot of clients over the years, success rates would easily be over 95%. If you want assistance with this send me a pm with the details.
Could you help me with my question @telcius https://www.ozbargain.com.au/node/388672#comment-6118193 would really appreciate it.
Yes - the circumstances you've described allow you to claim home office occupancy costs.
Get your floor plan, work out the proportion of the total your office is and apply to your mortgage(interest component only), rates/water etc. If you've missed it in previous years, amend those returns too.
Thanks for the offer. Like I said above I don't have an issue (yet). Just like to know the ways of the world.
Hi Peterpeterpumpkin!
I have a friend who's a professional accountant and I'm sure he'd be happy to answer your question at his normal rate. Hell, I'll even ask him to offer you his mates rates discounted rate.
Somewhat more seriously, because the above isn't entirely non-serious: It depends what kind of fine, what your circumstances are, and how the ATO are feeling that particular morning. A.k.a. All the things you pay a professional accountant for.