Business Limit Adjusted on a T2 Notice of Assessment

[snoplowguy]

I received a Notice of Assessment on a recently filed T2 return that has a January 31, 2017 year end. The Assessment worked out as I had calculated, however, I was somewhat disturbed to find the following narrative under the Explanation of changes and other important information;

We have changed the reduced business limit for the purpose of the small business deduction to match the amount calculated. We changed the reduced business limit on line 427 to $500,000.00 to match our calculated amount.

I don’t know where on the T2 Return I would find this Line 427 to verify what I submitted. Line 425 on the T2 Jacket (Reduced Business Limit) that I submitted with Taxcycle shows an amount of $500,000.00.

Everything looks good on my end, including the business limit, so I don’t know what the CRA received in my T2 transmission, nor can I find line 427 (even with a search). This is the first time I have come across this on filing a T2 return with Taxcycle, but it is also the first 2017 T2 year end I have filed as well.

[james1]

@snoplowguy

s I had calculated, however, I was somewhat disturbed to find the following narrative under the Explanation of changes and other important information;

We have changed the reduced business limit for the purpose of the small business deduction to match the amount calculated. We changed the reduced business limit on line 427 to $500,000.00 to match our calculated amount.

I don’t know where on the T2 Return I would find this Line 427 to verify what I submitted. Line 425 on the T2 Jacket (Reduced Business Limit) that I submitted with Taxcycle shows an amount of $500,000.00.

Everything looks good on my end, including the business limit, so I don’t know what the CRA received in my T2 transmission, nor can I find line 427 (even with a search). This is the first time I have come across this on filing a T2 return with Taxcycle, but it is also the first 2017 T2 year en

I had one as well but I had mind at $50,000 for this company. Assessment processed as filed but had the little same sentence saying they has recalculated to $50,000 to match their records

[Cameron]

@snoplowguy

We have changed the reduced business limit for the purpose of the small business deduction to match the amount calculated. We changed the reduced business limit on line 427 to $500,000.00 to match our calculated amount.

It sounds like it might be a CRA quirk, but if you want to look at exactly what was transmitted, click on the highlighted icon in your history, and see for yourself:

[snoplowguy]

Its almost as if the CRA changed the line number for “Reduced small business limit” from 425 to 427 and didn’t bother tell the software developers.

[snoplowguy]

@Cameron

It sounds like it might be a CRA quirk, but if you want to look at exactly what was transmitted, click on the highlighted icon in your history, and see for yourself:

Had already done that. Not sure what the best software is to view the .cor file so I always use Notepad. It’s a bit of a jumbled mess, but when I search for “427” I don’t get any results. If I search for “425” I see 500,000

Taxcycle does not seem to transmit an amount for line 427… so yes… phantom line 427 could be a CRA quirk.

[Steven]

Good afternoon,

Line 427 will be available in the next T2 release due out soon. The CRA system had its update recently so it could be a quirk. I have sent an email to the CRA informing about these NOAs. If I hear anything I will let you know.

Have a great summer!

Steven

[Steven]

@snoplowguy @james1

The CRA confirmed that this message on the NOA will not be issued once TaxCycle is updated in a week or so with the new line 427 in the T2 jacket. So, nothing to worry about. If you have any questions, please let me know. Have a great day!

Steven