The ATO has advised that it will soon issue its first round of letters to trustees of closely held trusts who have lodged their 2010 trust tax return where either of the following applies:
- the beneficiary's tax file number (TFN) or other details such as name, address and date of birth could not be matched to ATO records
- the trustee did not include a beneficiary's TFN in the 2010 trust tax return.
The ATO says that if agents receive one or more of these letters, they should first check their client's records to see if they have the correct information on hand. If the information they hold is also incorrect, agents neet to contact their clients to update their records. The trustee will then need to submit a TFN report – available from the ATO website from 1 July 2011 – with the updated information. The TFN report must be submitted by 31 July 2011.