Subject to complying with the ATO amendment periods, all tax returns can be reviewed, and amended where necessary. Taxpayers who have changed accountants, or previously prepared their own tax return, should have their prior year’s tax returns reviewed. There is nothing like a second opinion, to confirm whether a prior year’s tax return was lodged correctly, or not.
Research by TaxFitness shows that over 40% of reviewed tax returns, have omitted legal tax deductions. This is due to a combination of factors including:
- Accountants omitting legitimate tax deductions due to lack of knowledge, carelessness, or just human error.
- Taxpayers preparing their own returns omitting tax deductions due to lack of knowledge on all the deductions they are entitled to.
A tax return review is a simple process. All that’s required is a copy of the previous years tax return, and a proactive accountant who will review the prior years return.