Tax Law

ATO Decisions you can object to + time limits

By law you can object to tax assessments (except for the Diverted profits tax assessment) and most other decisions the ATO make, within the appropriate time limits.

You can object to most decisions about:

➲ Australian business numbers (ABNs);

➲ Cash flow boost;

➲ Excise;

➲ Fringe benefits tax (FBT);

➲ Fuel schemes;

➲ Fuel tax credits;

➲ Goods and services tax (GST);

➲ Income tax;

➲ JobKeeper payment;

➲ JobMaker Hiring Credit;

➲ Luxury car tax (LCT);

➲ Penalties and interest;

➲ Resource rent taxes (petroleum and minerals);

➲ Single Touch Payroll (STP);

➲ Superannuation;

➲ Superannuation – reviewable decisions;

➲ Wine equalisation tax (WET).

Time limits

Time limits for lodging objections vary from 60 days to four years.

The time starts from the date the assessment or notice of decision was given to you.

This is generally taken to be the date the ATO's assessment, notice, ruling, demand, decision or other correspondence was delivered to you or your representative in the usual course of the post.

If the final lodgement day falls on a non-business day, your objection can be lodged on the next business day.

Extension of time to object

If you're outside the time limit, you can ask for an extension of time by including a written request with your objection.

The ATO will process a request for an extension of time, and notify you in writing of the outcome.

If the ATO accept your request, they will consider your objection.

If the ATO refuse, they will explain your right to review their decision.

See also:

➲ PS LA 2003/7 How to treat a request to lodge a late objection

Source: For detailed + current information regarding the time limit applicable to your objection please refer to ATO Website - Decisions you can object to and time limits

Important Notice:

This FAQ is intended for general interest + information only.

It is not legal advice, nor should it be relied upon or used as such.

We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.

Is IRS Form 1099-MISC, 1099-NEC or some other variant of Form 1099 required to be filed?

For each person to whom you have paid the following during the year (Form 1099-MISC):

1️⃣ At least $600 in Rents (Box 1);

2️⃣ At least $10 in Royalties (Box 2);

3️⃣ At least $600 Other income (Box 3), including prizes and awards;

4️⃣ Any amount of Federal income tax withheld (Box 4); including backup withholding

5️⃣ Any fishing boat proceeds (Box 5);

6️⃣ At least $600 Medical and health care services (Box 6);

7️⃣ Direct Sales Totalling $5,000 or more (Box 7);

8️⃣ At least $10 in Substitute payments in lieu of dividends or interest (Box 8);

9️⃣ Crop insurance proceeds of $600 or more (Box 9);

🔟 Gross proceeds of $600 or more paid to an attorney, for example in a settlement agreement (Box 10, but payments to attorneys for services are reported on Form 1099-NEC);

⚖️ Fish purchased for resale (Box 11);

⚖️ Section 409A deferrals (Box 12);

⚖️ Excess golden parachute payments (Box 13); or

⚖️ Nonqualified deferred compensation (Box 14).

Note: It is important that you place the payment in the proper box on the form.

Refer to the instructions for more information.

Independent Contractor ➲ Federal Compliance Obligations

Any business or government entity (including nonprofit organisations) making payments for service performed by an Independent Contractor (who is not a Corporation# or an International Contractor^) is most likely required (unless an exception applies) by 31 Jan each year to:

1️⃣ File IRS Form 1099-NEC; AND 

2️⃣ Furnish a statement to the Recipient.

When is IRS Form 1099-NEC (Non-Employee Compensation) required to be filed?

If the following 4 conditions are met, you MUST generally report a payment as NEC:

1️⃣ You made the payment to someone who is not your employee (ie., an Independent Contractor excluding International Contractors^);

2️⃣ You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);

3️⃣ You made the payment to an individual, partnership, estate, or, in some cases, a Corporation#; and

4️⃣ You made payments to the payee of at least $600 during the year.

For each person to whom you have paid at least $600 for the following during the year (Form 1099-NEC):

✅ Services performed by someone who is not your employee (including parts and materials); or

✅ Payments to an attorney (including law firms or other providers of legal services).

Notes:

 You MUST File Form 1099-NEC or Form 1099-MISC to report sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale.

 You MUST also file Form 1099-NEC for each person from whom you withheld any Federal Income Tax (Box 4 of Form 1099-NEC) under the backup withholding rules regardless of the amount of the payment.

Refer to the instructions for more information.

Other Form 1099 Categories

⚖️ Interest on a business debt to someone (excluding interest on an obligation issued by an individual) (Form 1099-INT);

⚖️ Dividends or other distributions to a company shareholder (Form 1099-DIV);

⚖️ Distribution from a retirement or profit plan or from an IRA or insurance contract (Form 1099-R); or

⚖️ Payments to merchants or other entities in settlement of reportable payment transactions, that is, any payment card or third party network transaction (Form 1099-K).

Received a Payment and Other Reporting Situations

If, as part of your trade or business, you received any of the following types of payments, use the link to be directed to information on filing the appropriate information return.

⚖️ Payment of mortgage interest (including points) or reimbursements of overpaid interest from individuals (Form 1098)

⚖️ Sale or exchange of real estate, for example the person responsible for closing the transaction (Form 1099-S)

⚖️ You are a broker and you sold a covered security belonging to your customer (Form 1099-B)

⚖️ You are an issuer of a security taking a specified corporate action that affects the cost basis of the securities held by others (Form 8937)

⚖️ You released someone from paying a debt secured by property or someone abandoned property that was subject to the debt (Form 1099-A) or otherwise forgave their debt to you (Form 1099-C)

⚖️ You made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (Form 1099-MISC)

10 or More IRS Information Returns ➲ E-filing Now Required!

Starting tax year 2023, if you have 10 or more information returns, you MUST file them electronically.

This includes Forms W-2, e-filed with the Social Security Administration.

Find details on the final e-file regulations and requirements for Forms W-2.

To e-file, apply now for a Transmitter Control Code (TCC).

It may take up to 45 days for processing.

You can e-file any Form 1099 for tax year 2022 and later with the Information Returns Intake System (IRIS).

The system also lets you file corrections and request automatic extensions for Forms 1099.

For system availability, check IRIS status.

There are 2 ways to e-file with IRIS.

Source: E-file Forms 1099 with IRIS

Resolving Irregularities

If you are a recipient or payee of an incorrect Form 1099-MISC contact the payor.

If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly.

If you are a recipient or payee expecting a Form 1099-MISC and have not received one, contact the payor.

Refer to the instructions for more information.

Not Required to File 1099 Information Returns

You are not required to file information return(s) if any of the following situations apply:

⚖️ You are not engaged in a trade or business.

⚖️ You are engaged in a trade or business; and

❌ The payment was made to another business that is incorporated, but was not for medical or legal services;

❌ The sum of all payments made to the person or unincorporated business is less than $600 in one tax year; or

❌ ^ The payment was made to an International Contractor (not a US-Citizen) performing services outside the U.S.

Source: IRS ➲ Am I Required to File a Form 1099 or Other Information Return?‍

‍Credits:

This FAQ was created by James D. Ford Esq., GAICD CIPP/US CC | Attorney-at-Law, Blue Ocean Law Group℠.

State of California Bar Number: 346590

Foreign Persons & IRS Employer Identification Numbers (EIN)

Foreign entities that are:

1️⃣ Not individuals (i.e., Foreign Corporations, etc.); and

2️⃣ That are required to have a federal Employer Identification Number (EIN) in order to claim an exemption from withholding because of a tax treaty (claimed on Form W-8BEN-E) ...

Need to submit Form SS-4 Application for Employer Identification Number to the Internal Revenue Service in order to apply for such an EIN.

Special Instructions for Foreign Entities (Seeking Tax Treaty Exemption) ➲ No Requirement to File a U.S. Income Tax Return

Those foreign entities filing Form SS-4 for the purpose of obtaining an EIN in order to claim a tax treaty exemption and which otherwise have no requirements to file a U.S. income tax return, employment tax return, or excise tax return, should comply with these "Special Instructions" when filling out Form SS-4.

When completing line 7b of Form SS-4, the applicant should write "N/A" in the block asking for an SSN or ITIN, unless the applicant already has an SSN or ITIN.

When answering question 10 on Form SS-4, the applicant should check the "other" block and write or type in immediately after it one of the following phrases as most appropriate:

"For W-8BEN Purposes Only"
"For Tax Treaty Purposes Only"
"Required under Reg. 1.1441-1(e)(4)(viii)"
"897(i) Election"

If questions 11 through 17 on Form SS-4 do not apply to the applicant because they have no U.S. tax return filing requirement, such questions should be annotated "N/A".

A foreign entity that completes Form SS-4 in the manner described above should be entered into IRS records as not having a filing requirement for any U.S. tax returns.

Immediate Response to the IRS Required ➲ No Requirement to File a U.S. Income Tax Return

However, if the foreign entity receives a letter from the IRS soliciting the filing of a U.S. tax return.

The foreign entity should respond to the letter immediately by stating that it has no requirement to file any U.S. tax returns.

Failure to respond to the IRS letter may result in a procedural assessment of tax by the IRS against the foreign entity.

If the foreign entity later becomes liable to file a U.S. tax return, the foreign entity should not apply for a new EIN, but should instead use the EIN it was first issued on all U.S. tax returns filed thereafter.

International EIN Applicants

If you have no principal place of business, office or agency, or legal residence in the United States or U.S. Territories, you're considered an international applicant.

This is a free service offered by the Internal Revenue Service and you can get your EIN immediately.

You can only apply for an EIN as follows:

By Telephone - If you're an international applicant, you may call 267-941-1099 (not a toll-free number), 6 a.m. to 11 p.m. Eastern time, Monday through Friday, to obtain an EIN.

You MUST be authorized to receive the EIN and answer questions concerning the Form SS-4.

When applying by telephone, it's helpful to complete the Form SS-4 before contacting the IRS.

An IRS representative will use the information from the Form SS-4 to establish your account and assign you an EIN.

By Fax or Mail - You can apply by fax or mail as indicated above.

References/Related Topics

• International Taxpayers
• Taxation of Nonresident Aliens

Source: IRS ➲ Taxpayer Identification Numbers (TIN)‍

Further Reading:

Do you need an EIN?

How to Apply for an EIN

9 Benefits of Getting an EIN (Even If YOU Don't Have To)

Employer Identification Number ➲ Understanding Your EIN

Do you need a New EIN?

How to complete the W-8BEN-E Form for Australian Companies

‍Credits:

This FAQ was created by James D. Ford Esq., GAICD CIPP/US CC | Attorney-at-Law, Blue Ocean Law Group℠.

State of California Bar Number: 346590