Ways To Solve Tax Debts

How Can I Solve a Tax Debt Problem?

Taxes and tax debt can easily become an issue but how can you solve a Tax Debt problem? Certainly, when you find you have a tax or tax debt issue there are some points to remember. 

The ATO services and communications are recorded and time-stamped. Indeed, they relate to businesses by how they communicate with the ATO and also by sticking to deadlines. As a result, you need to keep track of your obligations, communications and your tax debt issue in the same manner.

Certainly, the ATO will seek to resolve the tax debt in as short a period of time as possible.

The ATO has various internal procedures in place for the assessment of the viability of a business and the collection of tax debt. Indeed, we quite often find clients are surprised by how far along the collection process they are as the ATO has not contacted them or they are waiting for a response. Therefore our first steps in solving your Tax Debt are:

  1. Firstly, act early and act fast.
  2. Secondly, review all of your ATO Tax portal accounts for the total amount of tax owed. Definitely, the ato debt you owe may not be advised from all the various accounts. However, you may request your accountant or bookkeeper to provide the balances.
  3. Thirdly, employ a decent bookkeeper and accountant to help keep up to date with your compliance and BAS Lodgements (if you are GST registered).
  4. Also, plan your payments - if you have a large tax debt, the ATO may require a lump sum payment before agreeing to ongoing payments. Also, ensure you can meet your payment plan without missing a payment plus your ongoing tax obligations. As the ATO will cancel any payment plan if you don't meet your obligations.
  5. Certainly, be in communication with the ATO and respond by any due dates. However, if you are concerned then use your accountant to discuss your options with the ATO.
  6. Keep in communication with the ATO - I know I've mentioned this above; however, I cannot impress on this enough. The ATO has procedures for no contact, which include court judgments and bankruptcy. 
  7. Then, if possible, clear the debt if you are struggling to meet the ATO tax debt payment schedule. If you miss or are late on one payment the ATO agreement will be cancelled, and you will need to re-apply. In most cases, an agreement will not be reinstated unless there are extraordinary circumstances.
  8. Finally, be proactive - don't wait for ATO to be in contact as this could lead to issues with negotiating extended terms. As such, discuss with your accountant the best course of action as this may involve paying out your debt or negotiating suitable terms of payment.


Call Loan Saver Network on 1300 796 850 for information on the available tax debt loans. Additionally, we offer tailored help with tax debt and are very experienced in solving tax debt problems.

Let's talk about a solution that suits you