The ATO advises that on 7 February 2014 it will send letters to a small number of taxpayers affected by a system error which under-calculated the low income tax offset amount for minors for the 2011-12 and 2012-13 income years. Tax agents may receive letters on behalf of their clients.
If clients have been affected the ATO will send a letter to their postal address for service, notifying them that the ATO will be amending their tax return. The letter will contain:
- an explanation of why they are being sent the letter
- an apology for making a mistake
- an explanation of the amended assessment process
- information on how to contact the ATO if they have questions.
The amendment may result in a small refund or reduce the amount of debt a client owes. The ATO will pay the client any refund via the method indicated on their most recent tax return.