Sucks, but not surprising given the staff reduction at CRA. Typical - reduce staffing just in time for T1 season…
A RRIF transfer on the death of a spouse IS DECLARED AS INCOME. That is why the T4RIF is issued with the notation, Transferred under 60(whatever).
However, you are then required to take a deduction for the same transfer. This will result in a review by the CRA. With that, you need to prove that the income was transferred to the surviving spouse’s RRIF.
If you fail to declare the income on the surviving spouse (the receiver,) you will see that the CRA will add that income to the tax return.
So, while you are complaining bitterly about what the prior preparer did, namely adding the income, I view that step was correct.
However, the prior preparer should have then taken a deduction before net income. On that point, I will agree that they were wrong.
The original preparer coded as RIFF income and not a transfer and therefore did not claim the off setting deduction.