If you receive an Income tax – more information request notice, you (or your client) must finalise it in myIR by the due date.
The date to finalise the more information request notice is:
- 31 March if the client has an extension of time
- 45 days after the date of issue if there is no extension of time (the date will be in the letter).
For those not finalised or where there is no additional information provided, an income tax assessment will be issued based on the information we hold.
If a client's mail is being redirected for income tax, this letter will be sent to you. Otherwise, it will go directly to your client.
Steps to finalise the assessment
Identify clients yet to have their 'more info request notice' finalised. You can get this information by exporting your client list report and filtering the ‘Individual filing group’ column to show ‘auto issued – more info’.
Look at each individual client in their income tax account in myIR – if this has been finalised you will see 'on time processed' otherwise it will show 'request to complete'.
Confirm with your client their income sources for the income year and finalise the assessment. This might include calculating expenses for clients receiving schedular income.
Once submitted the assessment will update to your client’s income tax account and an income tax assessment notice will issue.
If you need to file an IR3 individual income tax return for a customer who already has a pending Income tax - more information request, you can send this through the income tax return service in your software – these will no longer require the same manual intervention that E-File did. We will replace the pending assessment with the IR3. You should only do this when you have non-reportable income to add (e.g. rent/self-employed income), otherwise you should just finalise the existing assessment.
Where a client has an automatically issued income tax assessment that has been finalised already, you will need to make an 'amend' to the assessment, regardless of the income type (eg. interest/rent) you’re changing. Where 'amend' isn't used, it cannot be submitted - you will receive an error message advising of a duplicate assessment. In this instance you will need to amend the assessment using myIR.
If you are trying to finalise a clients Income tax - more information request, then your software needs to have 'CALC' functionality built. This will then allow amending and confirming for reportable income. If you don't have 'CALC' available in your software, you will need to use myIR to finalise the assessment.
If you're unsure if your software has 'amend' or ‘CALC’ functionality, you need to talk to your software provider.
Remember to check your client's bank account details are up to date so any credits can be refunded directly to their account.
For more help
Our Income tax assessments for individual clients of tax agent’s webinar can help you through the process of reviewing and finalising assessments.