An ATO letter can feel urgent before you even understand what it means. The safest first move is neither to ignore it nor to answer immediately. Confirm that the correspondence is genuine, work out exactly what the ATO is asking, protect the response date and then prepare a response supported by records.
First, check that the letter is genuine
ATO impersonation scams can arrive by email, text message, phone and post. Be cautious if a message asks you to click an unfamiliar link, disclose passwords or identity details, download software, or pay into an account you cannot independently verify.
Instead of using contact details supplied in a suspicious message, access ATO online services through a known address or contact the ATO using a number obtained independently. A genuine-looking logo, caller ID or reference number is not proof by itself.
Identify what kind of correspondence you received
The heading and final pages usually tell you what the document does and what rights follow. Common examples include:
- A request for information, asking for records or an explanation about particular transactions.
- A data-matching letter, identifying a difference between your return and information reported by another party.
- A review or audit notice, describing the issue, period and information the ATO intends to examine.
- An amended assessment or penalty notice, recording a decision already made and usually explaining how it may be disputed.
- Debt correspondence, seeking payment or warning of possible recovery action.
This distinction matters. A request for information is an opportunity to explain the facts before a decision. An assessment or penalty notice may start a formal objection period. Debt action may continue even while the underlying tax position is being disputed.
Record every date and reference number
Write down the issue date, response date, tax periods, account or case reference and the officer's contact details. Keep the envelope and save the full electronic message. If several documents arrived together, do not assume they all carry the same deadline.
If you cannot respond properly by the stated date, contact the ATO before it expires and ask whether more time is available. Note who you spoke with, when you spoke and what was agreed. An extension should be confirmed rather than assumed.
Read the request literally
Break the letter into a simple list:
- What issue is being examined?
- Which income years or reporting periods are involved?
- What documents or explanations are requested?
- What has the ATO already assumed?
- What happens if you do not respond?
Answering a different question can create unnecessary work. Equally, sending a large, unexplained document bundle can obscure the evidence that actually resolves the issue.
Gather records before writing your explanation
Start with the return, activity statement or transaction under review. Reconcile it to source documents such as bank records, contracts, invoices, working papers, correspondence and advice received at the time. Keep original files and provide readable copies unless the ATO specifically asks for originals.
Build a short chronology where the issue developed over time. If a record is unavailable, say what is missing and identify any alternative evidence. Do not recreate a document and present it as contemporaneous.
Respond accurately and in a usable form
A strong response usually follows the ATO's numbering, answers each question directly and points to the supporting document. Separate facts from assumptions. If third-party information appears wrong, explain precisely why and provide the reconciliation.
Before sending anything, check whether the answer affects another year, entity or tax. A quick explanation about one transaction can have consequences elsewhere. Keep a complete copy of the response and evidence of when and how it was lodged.
When professional help may be worthwhile
Consider obtaining advice before replying where the amount is material, the letter alleges deliberate conduct, several years or entities are involved, records are incomplete, penalties are proposed, or the response may expose a different issue. Help can also be useful when you understand the facts but not the tax treatment.
The objective is not to make the letter sound less serious. It is to identify the real issue, meet the procedural deadline and put forward an accurate response that the evidence supports.
Sources
Frequently asked questions
Should I call the ATO as soon as a letter arrives?
First read the entire letter and verify it is genuine. A call can clarify the request or discuss timing, but prepare your questions and keep a written record of the conversation.
Can I ask the ATO for more time to respond?
Sometimes. Contact the ATO before the due date, explain why more time is needed and confirm any extension granted. Do not assume that asking automatically changes the deadline.
Does an ATO letter mean I have done something wrong?
Not necessarily. Some letters seek information or ask you to reconcile third-party data. The type of notice and its wording show whether the ATO is asking a question, proposing a view or recording a decision.
What should I keep after replying?
Keep the original correspondence, your response, every attachment, evidence of lodgment and notes of calls. That record is important if the matter develops into an amended assessment or objection.