The TFSA Registration Rejection Report lists clients whose Tax-Free Savings Account (TFSA) registrations have been rejected by the Canada Revenue Agency (CRA). By monitoring this report, you can quickly address registration issues, allowing clients to maintain TFSA contribution room and avoid potential penalties.
What is a TFSA Registration ?
A TFSA registration is the process of submitting client and account information to the CRA to formally register the TFSA under the Income Tax Act. Once registered, clients can make tax-free contributions and earn tax-free investment income within their TFSA.
Why Clients Appear on this Report
Clients will appear on the TFSA Registration Rejection Report when the CRA declines their TFSA registration due to errors or missing information. Common rejection reasons include incorrect or missing client information, such as Social Insurance Number (SIN) discrepancies, name mismatches, date of birth errors, or incomplete Know Your Client (KYC) data.
How this Impacts Clients
If a TFSA registration is rejected, the account cannot be recognized as a registered TFSA by the CRA. This prevents clients from making eligible contributions and earning tax-free investment income. It could also lead to excess contribution penalties if clients inadvertently contribute to an unregistered TFSA.
How to Access the TFSA Registration Rejection Report
To access the TFSA Registration Rejection Report:
- Log in to the CRM portal.
- From the left navigation menu, click CRM > Accounts
- On the account’s index page, you can access the report as a saved view by clicking +Add view to the right of the tabs on the index page, and selecting TFSA Registration Rejection Reports from the dropdown.
You will now see a filtered list of all clients whose TFSA registrations have been rejected.
Best Practices
- Review the TFSA Registration Rejection Report regularly to address issues promptly.
- Validate client information (SIN, legal name, date of birth) before submission to reduce rejection risk.
- Communicate with clients quickly to gather missing or corrected information when needed.