CRA instalments moved to 2024

Tax Topics
1

Hopefully this is a simple one.

Filed client 2022 personal taxes with a large refund ($50K) owing which was to go to instalments for 2023. Client also made 10K instalment for 2023 since tax owing for 2022 filing was about 7k due to capital losses. CRA took 10 months to issue an NOA and issued the refund to instalments for 2024.

The client owes around $60k for 2023. So more or less square with CRA.

So 2 questions:

  1. No interest should be charged since prior year option was covered by instalments for 2023, correct?

  2. When we file, should I list instalments as 10K or 60K? I expect CRA will simply move the 50K from 2024 to 2023 but if we file with 10K as instalments, we’ll trigger the “balance owing” paperwork.

Thanks!

2

Yes, no interest should be charged in theory but I choose not to guess at what CRA will do.

What I do when an installment is in the wrong location, log into Rep a Client and request to move the payment to the appropriate year. If CRA has changed the system and you cannot move the payment via Rep a client, call CRA and request the move Before filing.

If you do not move the payment, it is entirely possible that CRA will send out a bill to the client and you will have to assist your client in calling at a later date to fix it.

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3

They will not automatically move it. Unless their policy has changed, you will have to request the move to 2023.

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4

I will attempt to move it myself. Thank you, this is the best approach.

5

I do not see an option on the CRA site to make this request. I called in and there is a 90 minute wait. Is there a better number to call for this?

6

This is why I have house phone and cell phone…sit on hold is always the normal

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7

I called them yesterday - it was supposed to be between an hour and a half and two hours but I had someone in one hour. The agent promised me that the interest would be adjusted automatically when payment is moved. I needed to move between personal and business - that we can’t do ourselves.

8

Just following up on this. Called today. Waited about an hour. Agent created a ticket to move the instalments from 2024 to 2023 (individual account). Agent told me it would require an “approval” step and should be processed by end of Friday (so 3 days).

9

I called a few days ago. Also about an hour’s wait.

I was on the client’s file in RAC, and saw the balance owing drop when the payments were transferred.

No waiting for permission or a delayed transfer.

10

Yes I don’t understand the “approval” step and delay at all but hey it’s the CRA.

11

I spoke to cra this morning and they switched installment payment to correct year. I was able to see on RAC immediately that it was done.
Was only an hour wait and i walked the dog with phone in pocket on hold.