Tax professionals getting used to the ATO’s practitioner lodgment service (PLS) need to be aware of some common lodgment authorisation errors.
When using its PLS, the ATO says new clients must be added to a practice’s client list before lodging. “If you try to lodge before adding new clients, the lodgment won’t be accepted and you will receive an authorisation error,” it says. The ATO says practitioners should check that their clients are entered on their authorised list (find out more here).
Other common reasons for authorisation errors in the PLS include:
the client is attached to a different registered agent number (RAN), if you have multiple RANsthe TFN or ABN is incorrectyou are not authorised for the relevant role or accountyour AUSkey permissions have not been set.
Changes to your client’s details through the PLS can be made in real-time and will be immediately reflected in the ATO’s systems.
Before you lodge, your SBR-enabled software can verify your client’s identity information against the ATO’s records to ensure they are correct. At present, these checks will only occur when you are preparing individual tax returns.
“Checking your client’s details match our records up-front gives you an opportunity to confirm or correct the information before you lodge, preventing delays to processing returns or expected client refunds,” the ATO says.
It also emphasises that in order to avoid errors and help stamp-out tax fraud through identity crime, it is important that practitioners take steps to check the true identity of individuals asking you to act on their behalf, particularly if your interactions with the client are exclusively online.
Proof of identity: Protect your business
The ATO says it is aware of increasingly sophisticated attempts by criminals to commit refund fraud by stealing the identities of taxpayers and posing as those taxpayers. It says carefully checking proof-of-identity documents and questioning discrepancies in information provided by people is an important first step to stop these attempts, and will also protect your business.
The ATO strongly recommends that practitioners perform identity checks for:
all new clients before accepting them as clientsexisting clients, in particular when personal information has been altered or information relating to tax affairs is inconsistent with information you already hold (and have previously verified) about their tax affairsall representatives of clients (whether they claim to represent new or existing clients).
“It is always best to check original documents to verify an identity,” the ATO says, adding that practitioners may be able to use the Document Verification Service (DVS). This is a national online system that helps businesses build greater confidence in the identities of their clients.
“The DVS allows you to compare a client’s identifying information with a government record.” However note that businesses must meet certain eligibility criteria and pay a fee to use this online system.
The ATO says that if you or your staff cannot confirm the identity of an individual, or you suspect fraudulent documents are being used, you should notify it of the incident so it can stop any other attempts to use that identity.
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