ATO debt referred to Recoveriescorp or Probe: is it real, and what to do

The ATO uses external collection agencies for some debts. Recoveriescorp and Probe are among the names people encounter.

The agency collects on the ATO's behalf. It has not bought your debt, and payments still go to the ATO. The money is not being collected for the agency's own account.

Importantly, referral does not remove your ability to deal with the ATO. You can still deal with the ATO directly about the debt, including about a payment arrangement.

Because a balance was outstanding and unresolved. Referral is a collection step, not a judgment on the size of the debt or on you personally.

Where unlodged returns sit underneath the debt, the amount being chased is often larger than the real figure, because unlodged returns often inflate the debt via default assessments - assessments raised without your deductions.

That is worth knowing before you agree to pay an amount. The number the agency is quoting may be a number that a lodged return would reduce.

Collection activity continues, and the underlying debt stays with the ATO and keeps accruing the general interest charge.

Because a referral indicates the debt has already been unresolved for some time, continued silence keeps firmer recovery options open, including garnishee notices.

If the debt rests on default assessments, ignoring it also risks leaving an overstated figure in place while the windows to correct it narrow.

Verify the debt in myGov before paying anyone. Check the balance in your ATO account first. This protects you from scams that imitate collection agencies, and it tells you whether the amount being quoted matches the ATO's own records.

Lodge first if anything is unlodged. If missing returns are behind the balance, lodging them is what corrects it. Paying an inflated default assessment figure does not fix the cause and may mean paying more than you owe.

Then deal with the debt. You can still deal with the ATO directly, including proposing a payment plan on the corrected balance. Our ATO tax debt and payment plans page explains how. If you want the lodgements and the debt handled in the right order, a free assessment is the place to start, on a fixed fee.