Tips To Help With ATO Debt

ato debt collection

Depending on the circumstances, one of the friendly tax professionals will explain the options and fees associated with our professional assistance with ATO debt collection services, tailored just for you. If you need professional help with ATO debt, contact our experienced team of tax professionals today. Contact a tax professional for help with your ATO debt before filing for bankruptcy.

A compromise offer may be a legitimate option if you are unable to pay your tax obligations in full or are in financial difficulty. About one in four businesses can make a deal with the ATO to settle a penny dollar tax bill by offering a compromise process.

If you can prove to the ATO that you cannot pay your tax debt without falling below a basic standard of living, you may qualify for a compromise offer. If you can take steps to reduce your tax liability to $50,000 or less, you may qualify for an ATO debt payment plan.    

If you owe $50,000 or less in personal income tax, penalties, and compounded interest, and have filed all tax returns. You can avoid ATO collection notices and actions, such as federal withholding notices or ATO collections, by entering into an instalment agreement in advance and making instalments.

Just like making monthly payments with a credit card, you can pay the ATO to deal with your tax debt before the ATO takes more aggressive action.

Even if you can’t pay your bill with a credit card, reducing your debt will make dealing with the ATO easier. If you have money or funds to pay taxes, the ATO probably won’t compromise. Taxpayers who are in financial distress and believe they cannot pay their tax debt may file a “compromise offer” with the ATO.

Working with a tax professional to figure out how to pay off your ATO debt can save you time and frustration, even help you find a quick fix before you earn more interest, and even save money. Whether you need help with your ATO debt or need someone to negotiate on your behalf, there is a team of experienced professionals who can help you resolve your ATO tax issues quickly and efficiently. 

Luckily, most small businesses that are in arrears can settle with the ATO if they know the ins and outs of this amazing tax collection machine. Small businesses with tax arrears face daunting ATO powers and the various methods the agency can use to collect tax arrears, many of which could mean the end of your business. The ATO may request tax refunds annually to help pay off outstanding debts, and they may issue loans on your property and/or assets, or even withdraw money directly from your paycheck, which can be a stressful experience.

If you pay tax credit companies an upfront payment that can be thousands of dollars, those companies claim they can reduce or even eliminate your tax liability and stop collecting back taxes by requesting legitimate ATO relief programs.