I’m curious how many other T1 preparers have seen this specific issue. I now have 5 clients (out of 250 total T1 clients) that have experienced this:
- CRA is missing a T4 slip for the client
- Relates to 2018 or 2019 tax year
- Some of the employers (perhaps all, but not confirmed) have filed the T4s via paper mail
- Sometime during 2020, the T1 was reassessed.
- In some cases, CRA sent a letter asking for support. But, for at least two of my clients there was no communication prior to reassessment.
- In the reassessment, CRA removed the deductions for CPP, EI, and income tax (withheld by employer). Then, CRA moved the income amount from line 10100 to line 13000 (101 to 130).
- Upon filing a T1-ADJ, and including the paper copy of the T4 slip, CRA re-assessed the T1, added the T4 info back onto the T1, but left the fictitious amount on line 13000.
How often is this happening?
Why is this happening?