Reporting TPRS payments
We may contact you if you received payments for Taxable payments reporting system (TPRS) services, and you didn't include this business income in your tax return.
The services that come under the TPRS are:
- building and construction
- cleaning
- courier and road freight
- information technology (IT)
- security, investigation or surveillance.
Businesses that provide TPRS services and pay contractors to deliver them on their behalf are required to report these payments each year by lodging a Taxable payments annual report (TPAR).
Discrepancy letter
If you have received a Discrepancy letter, the letter explains that the amounts of income reported through the TPAR exceed the amount of business income reported in your tax return.
If you have checked your records and find a mistake (that is, you have under reported your income), then you should amend your tax return for that year.
If you don't agree with the information reported by the payer and they are known to you, you can contact them to verify the amounts reported.
If you still believe that payments were incorrectly reported to the ATO, you may contact us to discuss any suspected reporting errors and we will follow up with the payer on your behalf.
Before contacting the ATO, please confirm that:
- you have kept complete business records for the year in question
- you have requested that the payer alter incorrectly reported amounts in the TPAR
- you have allowed the ATO and the payer a reasonable amount of time to make changes to the TPAR. This should be at least 28 days from when the payer agrees to any changes to an existing TPAR
- if you have a Tax Agent, you have contacted them to ask if there is some other factor which explains the discrepancy.