ATO Review Help
Clarify Questionnaire Scope, Reconcile Source Records & Submit Structured Evidenced Responses
Service at a Glance
Personalized scope & lodgementWage earners, investment property owners, CGT, crypto & standard returns
100% online video meetings (Outlook Calendar) or in-person
Direct electronic ATO portal lodgement by Registered Tax Agent
Draft explained and authorized by you before electronic submission
- Pre-lodgement draft walkthrough & written client sign-off
- Extended ATO tax agent lodgement deadlines available
- Transparent upfront quoting & zero lodgement without approval
What is an ATO tax review?
The ATO may review a return, activity statement, transaction or specific tax issue by requesting explanations and supporting information. The ATO describes reviews as a way to identify whether compliance issues need a more detailed examination. A concern may be resolved during the review, or the matter may be escalated to an audit if questions remain.
A review is generally more targeted than an audit, although the scope can expand. The notice should identify the entity, periods or issues, contact officer, documents requested and due date. Do not assume the word ‘review’ makes the request informal: the legal effect depends on the particular letter and whether the ATO has used formal information-gathering powers.
Targeted Examination
Reviews focus on specific transactions, data matches, expense ratios or particular lodgements rather than a broad full-entity examination.
Two Potential Outcomes
The matter can be resolved cleanly during the review if evidence substantiates the claims, or escalated to a formal audit if concerns remain.
Clear Notice Scope
The notice identifies the legal entity, specific periods, case officer contact details, questionnaire items and a strict response deadline.
Legally Binding Status
Never assume 'review' means informal. The legal effect depends on the statutory powers cited in the notice and formal information-gathering notices.
What should you do when the notice arrives?
Keep the complete letter and attachments. Record its date, reference number, requested items, response deadline and the officer’s details. Confirm which individual, company, trust or other entity is involved and whether the request covers one tax period or several. If authenticity is uncertain, verify the communication through official ATO channels.
Gather the relevant return or BAS, working papers, ledgers, source documents and earlier correspondence. Preserve electronic records and keep copies of everything supplied. Record calls, agreed dates and follow-up requests. If a record cannot be found, identify the gap and other contemporaneous evidence; do not invent, recreate or backdate a document.
If the timeframe is difficult or a request is unclear, contact the case officer promptly. Explain what is outstanding and propose a practical date or response method. The ATO may consider a request for additional time, but an extension must be confirmed rather than assumed.
Preserve the Full Correspondence
Keep the complete letter and every attachment. Record its date, reference number, requested items, response deadline and the case officer’s details. Confirm the entity type and periods covered. Verify authenticity if unclear.
Gather Substantiating Records
Assemble the relevant return or BAS, working papers, ledgers, source documents and earlier correspondence. Preserve electronic files and duplicate everything provided. Maintain detailed call notes and agreed timelines.
Identify Gaps Without Backdating
If a specific receipt or invoice cannot be found, identify the gap transparently and support with contemporaneous secondary evidence (bank statements, supplier statements). Never invent, recreate or backdate documents.
Confirm Any Extension in Writing
If the deadline is unworkable, contact the case officer promptly with a practical timetable. The ATO may agree to extra time, but never assume an extension is granted until you have written ATO confirmation.
Unsure about an unfamiliar ATO correspondence code or requirement? Our ATO Letters service focuses on rapid triage and verifying correspondence authenticity.
What records might the ATO request?
The documents depend on the issue. A business-sales review may involve invoices, bank statements, sales-system reports, GST working papers and bank reconciliations. A deduction review may require receipts, logbooks or usage records and an explanation of how a claim was calculated. Rental property or capital gains questions can require contracts, settlement statements, ownership records, dates, valuations and cost evidence.
Relevance is as important as volume. A good response maps each question to an explanation and supporting record, with schedules that reconcile to the amount lodged. Sending an unstructured folder can conceal rather than resolve the point. Equally, omitting unfavourable but responsive material can damage credibility and may fail to answer the request.
Business Sales & GST
BAS & Revenue Examinations
- Tax invoices & POS system turnover summaries
- Full trading bank statements & merchant settlements
- GST calculation sheets & reconciliation schedules
- BAS workpapers tying to ledger accounts
Work & Operating Deductions
Expense Substantiation
- Itemised receipts and proof of electronic payment
- Compliant logbooks, odometer records or diary logs
- Apportionment calculations for mixed private/business use
- Employer confirmation letters regarding required costs
Rental Property & CGT
Capital & Asset Transactions
- Purchase and sale contracts & formal settlement sheets
- Title deeds, ownership splits & loan redraw statements
- Depreciation reports & capital works schedules
- Valuation reports, cost base records & improvement invoices
Submission Strategy: Structured Reconciliations vs Data Dumps
Maps every ATO questionnaire item directly to an explanatory schedule, clear calculation steps, and indexed supporting receipts. Reconciles exactly to the figures reported on the return.
Sending raw, unindexed folders conceals rather than clarifies the issues, delays resolution, and may trigger broader scrutiny. Selective omission of responsive facts severely undermines tax credibility.
How should the response be prepared?
This approach gives the ATO a clear path through the evidence and helps identify unresolved issues before submission. It also reduces the risk of different people giving inconsistent explanations.
Scope the Request
Scope the request by entity, tax, period, transaction and due date.
Reconcile to Lodged Figures
Reconcile lodged amounts to the accounting records and source documents.
Categorise Content
Separate facts, calculations, assumptions and technical tax positions.
Direct Answers & Labelled Files
Answer each question directly and label the supporting attachments.
Pre-Submission Consistency Check
Review the complete response for consistency before it is submitted.
Retain Exact Audit Copy
Retain an exact copy of what was provided and note any next action.
What if you find an error during the review?
Establish the correct facts and figures before deciding how to disclose or correct the issue. The right process depends on the tax, period, type of error and stage of the ATO examination. A voluntary disclosure may reduce an otherwise applicable administrative penalty in appropriate circumstances, but the result and reduction depend on the law and facts.
Our voluntary disclosure service explains that separate process. Do not make an incomplete admission merely to respond quickly. A disclosure should identify the error, correct amount, affected period, evidence and method of correction. Interest, tax and other consequences can still apply even where a penalty is reduced.
Principles for Handling Review Discrepancies
Establish Facts & Quantify First
Establish the correct facts and figures before deciding how to disclose or correct the issue. The right process depends on the tax, period, type of error and stage of the ATO examination.
Potential Penalty Mitigation
A voluntary disclosure may reduce an otherwise applicable administrative penalty in appropriate circumstances, but the result and reduction depend on the law and facts.
Avoid Hasty, Incomplete Admissions
Do not make an incomplete admission merely to respond quickly. A disclosure should identify the error, correct amount, affected period, evidence and method of correction.
Tax & Interest Still Apply
Interest, tax and other consequences can still apply even where a penalty is reduced. The underlying tax liability remains payable once adjusted.
What if you disagree with the ATO’s position?
First determine whether the ATO has expressed a preliminary concern, reached a final audit position or issued an assessment or another reviewable decision. Provide missing facts and technical reasons at the stage when the ATO is still considering them. A later objection is not a substitute for a complete review response.
Independent review may be available for certain eligible matters, and a formal objection may be available after an assessment or other reviewable decision. Rights and time limits vary, so read the notice and act promptly. Complex interpretation, privilege, litigation or formal legal representation may require a tax lawyer or another specialist. If the matter escalates, see our ATO audit support service.
1. Preliminary Stage Engagement
Provide missing facts and technical reasons while the ATO case officer is still considering them. A later objection is not a substitute for a complete review response.
2. Independent Review Availability
Independent review may be available for certain eligible large business or complex matters prior to finalisation of the audit position.
3. Formal Part IVC Objection
A formal objection may be available once an assessment or other reviewable decision is issued. Strict statutory time limits apply from the notice date.
4. Audit Escalation Support
If unresolved questions cause the ATO to convert the review into a formal audit, our structured audit support assists with expanded representation.
Has the review escalated into a formal examination? Visit our dedicated ATO Audit Support practice for comprehensive representation.
How Financially Up helps
Our ATO review assistance can include reading the notice, defining the questions and due dates, checking earlier lodgements, reconciling source documents, preparing schedules and explanations, and managing authorized communication. We will identify information gaps and explain any uncertainty that cannot be resolved.
The work may expand if the ATO adds periods, entities or taxes, or moves to an audit. We agree the scope as it develops and do not promise the outcome. Tax-agent assistance does not remove the taxpayer’s responsibility to provide complete facts, records and instructions.
Notice Analysis & Questions Definition
Reading the ATO notice in detail, isolating specific questions, identifying cited statutory provisions, and cataloguing strict due dates.
Lodgement & Record Auditing
Checking earlier tax returns or activity statements against ledgers, bank statements, and source documents to detect root variances.
Schedules & Factual Reconciliations
Preparing clean, auditable supporting schedules, calculations, and structured explanations mapped to the ATO questionnaire.
Gap Identification & Disclosures
Highlighting missing records or evidentiary uncertainties early, assessing whether voluntary disclosures or amendments are needed.
Authorized ATO Communication
Acting as your registered tax agent representative, liaising directly with the case officer, and submitting responses within scope.
Dynamic Scope & Escalation Control
Transparently agreeing on updated scope if the ATO broadens tax periods, requests other entities, or converts the matter to an audit.
Why choose Financially Up Pty Ltd?
Financially Up is a registered tax agent with more than 10 years of experience. Our CPA and IPA professionals support clients Australia-wide through online and in-person appointments. We focus on clear scope, careful reconciliation of underlying records and structured responses that address the ATO’s questions directly.
Registered Tax Agent
Officially registered with the Tax Practitioners Board (TPB #26242127), authorized to manage formal communication with the ATO on your behalf.
CPA & IPA Qualified Team
Our team consists of qualified CPA and IPA professionals with deep technical knowledge of Australian taxation law and compliance procedures.
10+ Years of Experience
More than a decade of proven experience responding to ATO compliance reviews, data-matching enquiries, and preliminary audit questionnaires.
Australia-Wide Appointments
Supporting clients across Australia through secure online meetings, with head office appointments at Australia.
Received an ATO Review Notice?
Call 1300 328 316 for Immediate Review Scoping & Representation
ATO Review FAQs
Find fast answers to common questions about our individual tax lodgements, deductions, and CPA services.
No. A review examines information and may end without adjustment. The result depends on the facts, evidence and applicable law.
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