Seeing “In progress – Under review” in myGov, or a letter saying the ATO is reviewing your return, means a person or a targeted check is looking at something before your Notice of Assessment issues. It is not an audit, and most reviews end with either a confirmation or a modest adjustment. What matters is how you respond and how quickly.
This guide explains the difference between automated processing, a review and a formal audit, what a review letter asks for, what happens if you ignore it, how to fix a mistake yourself through an amendment (and the time limits), and when to bring in a registered tax agent. ATO status wording, amendment rules and timeframes were checked on 6 October 2026.
If you only read one section, read how to respond: the outcome of a review is decided far more by whether you answer by the due date than by what the ATO found.
Key takeaways
- “Under review” is the ATO’s manual check before finalising. It can take up to 30 calendar days; the ATO contacts you if it needs anything.
- Review and audit are different. A review asks about specific items; an audit is a formal examination of your affairs opened in writing.
- Respond by the date in the letter. Ignore it and the ATO decides on the information it has – usually by disallowing the claim.
- Fix it yourself if you can. Individuals have 2 years to amend; online amendments take about 20 days. Voluntary disclosure cuts penalties.
- Keep records for 5 years from lodgement – it is the only defence that works.
Processing, review and audit at a glance
| Automated processing | Review | Audit | |
|---|---|---|---|
| What it is | ATO systems match your return against employer, bank and third-party data | A targeted check of specific items by ATO staff, often triggered by data matching or unusual claims | A formal, in-depth examination of your tax affairs for one or more years |
| How you know | myGov status “In progress – Processing” | Status “Under review” or “Information pending”, or a letter/myGov message asking for information | A written notification naming the years and issues, with a case officer |
| Typical timeframe | Most online returns within 12 business days | Up to 30 calendar days; longer if you are slow to respond | Several months |
| What you do | Nothing | Send the requested records by the due date; amend if you spot an error | Engage a tax agent; respond to formal information requests; attend interviews if required |
Why is the ATO reviewing your return?
The ATO data-matches every return. A review is usually triggered when something you lodged does not line up with what it already holds, or sits outside the normal range for your occupation and income. The common triggers:
- Income mismatch – an income statement, bank interest, dividend, sharing-economy or crypto amount the ATO has but you did not include.
- Deductions out of pattern – work-related claims well above what others in your occupation claim, or a sudden jump from last year.
- Working from home and car claims without the required records. The WFH fixed rate (70c an hour for 2025-26) needs an actual hours record, not an estimate; car claims over 5,000 km need a logbook. Our guide to how to claim work-from-home expenses covers the records.
- Rental property claims – interest on a loan partly used for private purposes, repairs that are really capital improvements, or expenses claimed on a property not genuinely available for rent. See our rental property tax return service.
- Identity flags – the ATO holds returns where a TFN may be compromised.
- Random and project-based checks – each year the ATO announces focus areas and reviews a sample of returns in them.
What does an ATO review letter look like?
A review typically arrives as a myGov message or letter titled along the lines of “We need more information about your tax return”. It names the specific items – for example “other work-related expenses of $4,200” – asks for records that support them, gives a due date (often 28 days), and explains how to respond: upload through myGov, or through your agent. It may also offer the option to amend the return yourself if you agree the claim was wrong. It is not an accusation; it is a request for evidence.
What does a formal audit involve?
An ATO audit is opened in writing, names the years and issues under examination and assigns a case officer. The ATO can issue formal notices requiring documents and information, interview you, approach third parties such as banks and employers directly, and look at several years at once. Audits run for months and conclude with a position paper you can respond to before amended assessments issue. Penalties and interest are considered at the end. Most individuals never experience one; reviews that are answered properly rarely escalate.
What happens if you ignore the letter?
The ATO does not drop it. After the due date it finalises the return on the information it has, which normally means disallowing the claim in full, issuing an amended assessment with the extra tax, and applying penalties and interest. A one-month review becomes a debt you cannot easily argue with. If you need more time, ask before the due date – the ATO usually grants a short extension.
How do you respond to a review?
- Read exactly which items are questioned and what records are requested. Do not send your whole year’s paperwork.
- Gather what you have: receipts, invoices, bank and card statements, logbooks, rosters or diaries for hours, employer letters confirming requirements. See what counts in our guide to claiming deductions without receipts.
- If a claim was wrong, say so and amend it rather than defending it – a voluntary disclosure before the ATO decides can reduce a penalty by up to 80%.
- Respond through myGov or your agent by the due date, keep copies, and note the ATO reference number.
- Wait for the outcome letter. If you disagree with an adjustment you have 2 years (individuals) to object.
How do you amend a tax return?
If you find an error – a missed income statement, a claim you cannot support, a deduction you forgot – fix it yourself. Individuals generally have 2 years from the day after the Notice of Assessment is sent to request an amendment; sole traders have 4 years from the 2024-25 return. The options:
- Through myGov. Sign in to myGov, open the ATO service, go to Manage tax returns, select the year and choose Amend. The ATO says an online amendment takes about 20 days to process.
- Through a registered tax agent, who lodges the amendment through Online services for agents and can explain the change to the ATO.
- In writing on the paper form or by letter – up to 50 business days.
Amending to increase a deduction you genuinely missed is just as legitimate as correcting an over-claim. Outside the 2-year window you may need to lodge an objection instead; the ATO can extend time in some circumstances.
Case studies
Fixing a mistake early
Meera claimed $3,800 of working-from-home expenses using an estimate of hours. In September the status changed to Under review and a letter asked for her hours record. She had none, so she amended the return herself to the hours she could show from her roster – about 600 hours at 70c, $420 – before the ATO decided. The ATO accepted the amendment, the shortfall was paid with the next assessment, and no penalty applied because she disclosed voluntarily.
Ignoring the ATO
Daniel received the same letter and set it aside. After the due date the ATO disallowed the entire $3,800, issued an amended assessment for the extra tax, added a 25% failure-to-take-reasonable-care penalty on the shortfall and interest from the original due date. He also lost the $420 he could have supported. The difference between the two outcomes was four weeks and one email.
Rule of thumb
If the ATO asks and you have the records, send them. If the ATO asks and you do not, amend before the due date. The worst outcome is the one where the ATO decides without hearing from you.
Common mistakes during a review
- Sending estimates instead of records. The ATO wants documents, not explanations.
- Defending a claim you cannot support instead of amending it.
- Missing the due date without asking for an extension.
- Throwing records out too early. Keep them for 5 years from the date you lodge.
- Lodging a second return because the first is “stuck” – it does not restart anything and creates a duplicate.
- Reacting to a scam as if it were a review. The ATO never asks for payment by gift card or crypto, and review letters appear in your myGov inbox, not only in an SMS.
FAQ about ATO reviews
What does “In progress – Under review” mean on my tax return?
It is the ATO’s own status wording: “We’re manually reviewing your tax return to make sure everything is right before we finalise it.” A person or a targeted check is looking at something in the return – usually a deduction or an income mismatch – before the Notice of Assessment issues. The ATO says manual processing can take up to 30 calendar days.
Is a review the same as an audit?
No. A review is the ATO checking specific items and asking you for information or records; most are resolved by letter within weeks. An audit is a formal, deeper examination of your affairs for one or more years, opened in writing, with a case officer, interviews and formal information requests. Reviews can escalate to audits if the answers raise more questions.
What if I do not have receipts for a claim the ATO is reviewing?
Provide whatever you have – bank or card statements, invoices, logbooks, a diary of hours. For some claims under $300 in total the ATO accepts a reasonable basis without receipts. If you cannot substantiate the claim, it is better to withdraw or reduce it yourself by amending than to have the ATO disallow it, because voluntary disclosure reduces any penalty.
How long do I have to fix a mistake in my tax return?
Individuals generally have 2 years from the day after the Notice of Assessment is sent to amend. Sole traders have 4 years from the 2024-25 return onward. Online amendments take about 20 days to process; written requests up to 50 business days. Outside the time limit you may need to lodge an objection.
Will I be penalised if the ATO finds an error?
Not automatically. Penalties apply to shortfalls caused by failing to take reasonable care, recklessness or intentional disregard, at 25%, 50% or 75% of the shortfall, plus interest. An honest mistake with records to show you tried is often penalty-free, and telling the ATO before it asks can reduce a penalty by up to 80%.
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Talk to a registered tax agent
A registered agent can see what the ATO is querying, speak to the ATO on your behalf through agent channels, prepare the response, and lodge any amendment properly. If you have a review letter or an audit notification, contact Nanak Accountants before you reply – call 1300 626 258 or get professional ATO assistance now. Businesses facing a broader review can also use our financial reporting support to get records in order.
This article is general information only and is not personal financial or tax advice. ATO status wording, amendment time limits and processing times were checked against ATO sources on 6 October 2026.
