From October 2023, the ATO are writing to small businesses with debts on hold greater than $50.
When a debt is on hold, any credits or refunds you become entitled to are used to pay off the debt. This is called offsetting and it’s required by law. When you lodge your tax return or BAS, you may find your credit or refund is less than expected or reduced to zero.
Even if you don’t receive a letter, you may still have a debt on hold.
You can see if you have a debt on hold or if offsetting has occurred by checking your statement of account or ATO Online services. The ATO website has instructions on how to do this.
You can pay all or part of your debt on hold at any time. If you want to start making payments towards your debt on hold and have it included in your account balance, you need to contact the ATO. You can also ask about payment options such as payment plans.
Remember, our tax professionals can help, feel free to get in touch!
Source: ATO Newsroom
