How to Amend a Tax Return

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Tax returns and obligations can be a headache, especially for businesses that need to follow complex tax laws and regulations . Every year, towards the end of the financial year you may start gathering the necessary documents, filling in the correct Australian Taxation Office (ATO) forms, and ensuring your business has up-to-date records.

In this article, we’ll guide you through the process of amending your tax return as a small business owner, answering the following questions:

• How can your business amend its tax returns?
• What is the time limit for submitting an amendment?
• How does the ATO process a tax return request?
• What tax rulings can you object to?

How can your business amend its tax returns?

As a business owner, you’re likely familiar with filing your taxes with the ATO. If you’ve filed the wrong tax information you can amend your return .

Here are the steps you should take to amend your business tax return:

1. Identify why you need to amend your taxes

If you find an error or omission in your original tax return, you must amend it. This could include mistakes, forgetting to include items or if there was a change in circumstance after your lodging.

For example, errors could include:

• Making a mistake when answering questions
• Forgetting to include income, or claim deductions
• A change in circumstances like receiving a revised payment summary

2. Gather supporting documents

You'll need to find all relevant documentation to support the tax amendment, including receipts, invoices, and bank statements.

3. Prepare an amendment

In most cases you can use the ATO's online services. You must select the option to amend your tax return on the ATO website.

The options available depend on the type of business making the amendment.

• Companies, partnerships and trusts can use
• Standard Business Reporting (SBR) software
• ATO online services for business
• Tax agent
• Letter
• Sole Trader or Individual
• ATO online service or app
• Tax agent
• Letter
• Request for amendment of income tax return for individuals form
• The ATO recommends waiting till your original tax return has been processed before lodging an amendment to avoid delays
• Self-managed super funds
• Tax agent
• ATO online services for business
• All amendments must be submitted as a new return in full, not just the part that needs to amended, there is a question that asks if is an amendment which you would need to mark as ‘Yes’
• Tax agent on behalf of a client
• Request for amendment of income tax return lodged by tax professionals form
• SBR software
• ATO online services for agents
• Letter

4. Make changes to your return

Make the necessary changes to the new tax return based on the errors or omissions you identified, ensuring all information is accurate.

5. Submit the amended tax return

Once you've made the necessary changes, you can submit the amended tax return to the ATO. Provide a reason for the amendment and attach any supporting documents.

The process for submitting your amendment vary based on the method you used:

• ATO online services for business
• Submit your amendment through the ‘Communication’ menu
• Select Secure mail, New
• The topic is Income Tax and the Subject would be Income Tax Amendment (relevant client type)
• Attach your amendment, tick the declaration and then send
• ATO Online
• Select manage tax returns to make amendments
• ATO app
• Select ‘View’, ‘Your tax return’
• Select ‘View tax return’ and then choose ‘Amend’

Please note this is the process as of writing in April 2023 and is subject to change.

6. Wait for the assessment

The ATO will assess your amendments and let you know if any further action is required. If you're owed a tax refund, the ATO will process it and issue a new notice of assessment.

Grow Your Business with QuickBooks

What is the time limit for submitting an amendment?

The time limit for submitting a tax amendment depends on whether you're amending your tax return to claim a refund or to correct an error.

By law, there are set time limits for amending your tax assessment, which are:

• Two years for individuals and sole traders
• Two years for small and medium businesses
• Four years for other taxpayers.

This time period starts from the day after the ATO gives you the notice of assessment for the income year, and you can submit multiple amendment requests within the time limit.

The time limit provides certainty surrounding your tax affairs since the ATO legally can't amend your tax assessment after the time limit is over.

How does the ATO process a tax return request?

The ATO states , “Just as we accept your tax return information at face value, in most cases we also accept the information in your request for an amendment”. Which means it is processed in a similar manner to a regular lodgment. In terms of time frame, if the ATO receives all the necessary data it can take 20 business days if submitted online and 50 business days if submitted by mail.

If the ATO believes you have provided the wrong tax information, they may conduct further audits to ensure your returns are accurate. If they discover issues or discrepancies, the ATO may request further information from your business, including Business Activity Statements (BAS) and payroll records.

What about goods and services tax?

Luckily, Airbnb hosts don’t have to pay goods and services tax (GST) . GST does not apply to residential lets, which means you are not liable to pay this on the rent even if your turnover from renting exceeds the GST threshold ($75,000).

On the flip side, this means you cannot claim GST credits for any costs associated with running the Airbnb.

How can QuickBooks help?

Understanding your tax obligations is a necessary part of running a business. QuickBooks aid businesses with tracking and reporting their financial transactions through our user-friendly interface to help you file the correct tax reports.

Streamline your reports and filings with innovative tax software to help ease the stresses of tax filing and reporting. Sign up for QuickBooks today and receive a free 30-day trial .

While every care has been taken to ensure the accuracy of the information presented as at 12 April 2024, Intuit is not providing you with professional advice and we recommend you obtain your own professional advice. Intuit is not liable for your use of the information presented.

FAQs

If you miss the deadline for filing your tax returns, you may be subjected to penalties and interest charges, depending on how late you are and the amount of tax you owe. If you’re in this situation, contact the ATO immediately to start the process of tax filing.

Your business will face no penalties for amending your tax return. However, if the amendment results in an increase in your tax obligations, then you may be liable to pay interest on the overdue sum.

You can amend a tax return from a previous financial year depending on the time limits and requirements set by the ATO. It might be worth speaking to a tax professional if you’re unsure about your tax deadlines.

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