"Latest from ATO.
I prepared 5 years' returns for client = 2 refunds and 3 payables to 30 June 2010. Payables offset against refunds. No worries. Refunds went to child support. Not a problem. Then the ATO in their clever way that it seems only the ATO can do. Cheque refund for Income Tax for the period from 01 July 2008 to 30 June 2009 $1,118.74. Where this $ 1,118.74 came from is a mystery. 2009 Refund was $ 1,694.11.
I advised my client to deposit the cheque so that he will have an extra $ 1,118.74 in his bank account so that he can pay the ATO $ 1,118.74 that he now owes them. I thank the ATO for letting me know that I can look forward to more stuff ups this year that make absolutely no sense at to anyone least of all to themselves. In case anyone asks the question, this is in the Income Tax Account. Nothing to do with Integrated Client Account.
By the way, as far as my client knows, Child Support would have been entitled to the $1,118.74 as well. I wonder if the payment had gone to child support in error if the ATO would chase my client up or ask child support to return the money? I think I know what the answer here would be. ATO stuffs up. Client is penalised."