Correspondence Preference form CP

The Correspondence Preference is made up of:

• the form CP, CorrespondencePreferencesforthePractice

• Agent Correspondence Preference Schedule L 

• Client Client Correspondence Preferences (schedule Z)

The Correspondence Preferences Tab provides a grid of Correspondence and Role Types to assist you in managing the flow of information from the ATO to you and your clients.

It is designed to provide flexibility and scope. Tax carries forward the Correspondence Preferences in the year end rollover routine.

In Accountants Office, initially all the Correspondence Preference settings are set to blank.

Types of Correspondence

The Correspondence Preferences Tab allows for each type of Correspondence to be received:

1. BAS - Business Activity Statement

2. IAS - Instalment Activity Statement

3. Education - Material including Booklets and Facts sheets

4. Forms - Payment Summaries, GST Returns

5. Status - Registration, Cancellation, Cycle and Rate Notices

6. Accounting - Assessments, Statement of Accounts, Penalty Notices

7. Compliance - Arrangement Letters, Reminders, Urgent Notices

Types of Role

The Correspondence Preferences Tab allows for each type of Role to which the correspondence relates:

1. Activity Statement Account,

2. Goods and Services Tax,

3. Deferred Company and PAYG Instalments,

4. PAYG Withholding,

5. FBT Instalments,

6. Luxury Car Tax, and

7. Wine Equalisation Tax.

Correspondence/Role combination

The Correspondence Preferences Tab allows the same options for directing the correspondence for each Correspondence/Role combination. These are:

• Clear Change - to reset the current change locally thereby directing the ATO to revert to the previous client preference,

• Default ATO - to direct responses according to the ATO standard option for this combination of Correspondence and Role Type,

• Agent - to direct responses to the Agent for this combination of Correspondence and Role Type, and

• Client - to direct responses to the Client for this combination of Correspondence and Role Type.

Examples of how these combinations may be used are shown below.

Correspondence Preference Examples

For simplicity, in these examples a combination of Correspondence and Role Type is indicated by (Row, Column). So:
(A,1) indicates Activity Statement Account information related to BAS, and (E,3) indicates FBT Instalment Education information.

Example 1: So that all Activity Statement Account information for all clients is directed to your Practice select Agent from the list at (A,1) in the Control Record, Correspondence Preferences.

Example 2: So that all Activity Statement Account information for all clients is directed to your Agents select Agent from the list at (A,1) under Maintenance > Agents > Properties > Defaults > Correspondence Preferences for each Agent.

Example 3: For specific clients requiring Activity Statement Account information directly, set (A,1) in the Returns Properties, Correspondence Preferences to Client.

Correspondence Preferences for the Practice

The IRMS settings displayed on the Control Record apply to all clients managed by the default Agent for the Practice. For the ATO to direct correspondence in accordance with the latest IRMS settings on the Control Record any changes to these settings must be transmitted to the ATO. This is done by means of a Form CP.

How to maintain the IRMS settings on the Control Record:

1. Click Utilities > Control Record > Correspondence Preferences tab

2. Set the settings as required.

3. Click Lodge CP form. The CP01 thus created will be found in the Sol64\ELS\data directory.

4. The CP01 file is transmitted to the ATO when you next establish a transmission session to the ATO.

The CP01 file pending transmission will contain:

1. the latest Correspondence Preferences for the Practice.
2. the latest Correspondence Preferences for other Agents, (where the Practice has more than one Agent).
3. any Correspondence Preferences entered under Return Properties.

Maintaining the Correspondence Preferences for the Agent - (Schedule L)

Clients whose returns are managed by an agent other than the default Agent for the Practice use the Correspondence Preferences set up for that Practice.

How to maintain the Correspondence Preferences for another Agent:

1. Click Maintenance > Agents > Properties > Defaults > Correspondence Preferences tab

2. Set the settings as required.

3. Click Lodge CP form. The CP01 thus created will be found in the Sol64\ELS\data directory.

4. The CP01 file is transmitted to the ATO when you next establish a transmission session to the ATO.

It is recommended that you keep a copy of the Form CP. This will also contain any schedules (L or Z) that have been included in the transmission. This record will act as a check for the agent on which taxpayer preferences have changed, if any.