Procedure For Failure To Lodge Penalty Remission – Reasons For Refusal.

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The ATO released internal operational guidance on documenting reasons for refusing failure-to-lodge (FTL) penalty remission requests. The document provides standard template paragraphs and instructions for ATO staff completing decision letters, covering scenarios including straightforward refusals where taxpayers lack demonstrated circumstances beyond their control, and cases involving histories of late lodgment without action or deferral requests. Staff are directed to reference the Law Administration Practice Statement PS LA 2011/19 and tailor responses to individual circumstances rather than mechanically applying templates. A January 2025 update modified guidance on financial hardship-related refusals. The material reflects administrative procedures for consistently communicating penalty denial decisions to taxpayers and their advisers.