New CRA authentication requirement

EFILE
1

Up until now, we haven’t had to authenticate ourselves when filing a T1, other than through TaxCycle, using our EFILE credentials. But, we needed to log into RAC for AFR to work. I hope this new requirement to log into RAC when filing doesn’t mean we will also first need authority to represent the taxpayer…

The CRA is enhancing security for online income tax and benefit return filing

I’m thinking first-time filers, or new clients that don’t have the required NOA we need to generate an authorization request.

2

Just got this Efile email:

When filing a 2026 income tax and benefit return using EFILE, EFILE users can choose to sign in to their CRA account before submitting a return. This optional step provides an additional layer of security by allowing the CRA to verify the identity of the individual initiating the EFILE transaction and helping to strengthen safeguards against unauthorized or fraudulent filings. It does not require the EFILE user to be an authorized representative of the taxpayer whose return is being filed. Once authentication is successfully completed, you can proceed with filing tax returns via EFILE without having to re-authenticate while the session is active.

3

They explicitly state that’s not the case.

4

Ah, yes. I should have read more closely. Thanks!

5

Also…to be clear, logging in for this year is currently OPTIONAL. It is not a “requirement” (although for sure it will be in the future).

The absolute biggest question is…will we still get booted out of RAC every few minutes so we have to continue to log in/re-login up to 20 times or more daily?

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