Sue, a resident, lodged her income tax return for the year ended 30 June 2016 on 5 October 2016. She received her income tax notice of assessment for this return on 27 October 2016. On 4 May 2017 the Commissioner of Taxation issued and amended assessment to Sue denying a deduction she had included in her tax return of $500 for the cost of purchasing a uniform on the basis that she had not incurred the expense. Sue has evidence of paying the expenses. The amended assessment indicated that Sue should pay additional tax and penalties of $275 by 11 June 2017. Based on this information which of the following statements is most correct?

Select one:

1.

Sue should appeal the matter to the Federal Court.

2.

Sue can object to the amended assessment and provide evidence that she has incurred the expense.

3.

Sue has no option but to pay the extra tax.

4.

The original assessment is most important and amended assessments should be ignored.

5.

The Commissioner is unable to issue an amended assessment because he has exceeded the time limits set by s 170 ITAA 36.