ATO Letter: Your SMSF's registration may be cancelled

If one of your clients has recently established an SMSF, the ATO may have sent your client a rather scary letter telling you that they may cancel the registration of your SMSF.

This letter has been sent directly to many new SMSF trustees and bypasses tax agents such as ourselves.

The wording reads: "Our records indicate that your SMSF doesn't hold any assets and may no longer be entitled to be registered as an SMSF"

We've even seen example of this letter being sent to SMSF trustees where their fund has already lodged an annual SMSF return - meaning the fund not only has assets, but an independent audit has been conducted!

The ATO is cracking down on SMSF registrations and has also recently changed the requirements for SMSF ABN applications - meaning new SMSFs must have assets BEFORE they can apply for an ABN. This has created a logistical challenge as most banks will not allow a new bank account to be opened without an ABN and TFN.

More information on these changes and how we recommend you deal with them in this help centre article: Fund assets on establishment of SMSF - ABR requirements for ABN application

What to do:

To address this issue either the tax agent or the trustees must complete the attached ATO form NAT 73681 - Confirmation of SMSF establishment and send it to the ATO with supporting evidence - such as the first bank statement of the SMSF. The completed form can be sent via fax or post.

If you would like us to attend to this issue on your clients behalf, please send or upload a copy of the first bank statement for the fund.  We will complete the form, execute as tax agents and send to the ATO.

If you any questions, please get in touch with us.

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