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New CRA Authorize a Rep Process for Feb 2020 per CPA Canada

CRA improves processes for authorizing tax reps
November 2019

Members who practise tax will be glad to hear that the Canada Revenue Agency (CRA) is significantly changing the T1 processes for authorizing tax representatives, based in part on input from CPA Canada’s Technology Working Group. The changes will be ready by February 2020 in time for the next personal tax season. The CRA has asked us to spread the word among our members who practise tax, so check out our handy summary of the revised T1 taxpayer representative authorization processes.

https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/corporate-tax/publications/tax-resources-for-cpas

If you go to the link above, then you can download the pdf.

PDF content

CRA improves processes for authorizing tax reps: what’s new?

The Canada Revenue Agency (CRA) plans to implement the following changes to their authorization processes for individuals as of February 2020.

OFFLINE ACCESS: Access to taxpayer information by telephone, in writing and in person

The CRA is introducing the new AUT-01 form, that combines the current T1013, RC59 and NR95 forms in one form. The AUT-01 form is designed for those who may still prefer or need to communicate with the CRA offline, so it can only be mailed or faxed to the CRA.

If you already have online authorization, do not submit a AUT-01 form. The CRA will process all authorization requests that it receives as new requests, and consider them as overriding previous requests if the representative named is already on file. Therefore, tax representatives will lose their online access if they submit a new AUT-01 form.

TWO OPTIONS FOR ONLINE ACCESS : Access to taxpayer information via Represent a Client, by telephone, in writing and in person)

The CRA will offer two online options for representative authorizations.

Option 1 – T1 software

Practitioners using T1 tax preparation software will find that the current electronic version of the T1013 form has been discontinued. Electronic submission of authorizations using T1 software will now generate a new signature page for your client to complete and sign. Once signed, the authorization request can be e-submitted to the CRA using the T1 software. The signed copy of the new signature page must be maintained in either hard copy or electronic format for six years

Option 2 – Represent a Client (RaC)

A new authorization process for individuals will be introduced in Represent a Client (RaC) that mirrors the existing business authorization process. The new process will require the practitioner who has a RepID to log into RaC and print a signature page for their client to sign. Once signed, the practitioner will upload the completed signature page in RaC. This authorization process does not require the use of T1 software.

Other important changes

• Electronically submitted authorizations using T1 software will no longer be denied when there is a “care of” address on your client’s CRA account at the time of submission.

• Barcodes for authorizations will be discontinued.

• Authorizations that are currently active with the CRA will no longer be cancelled on the death of a taxpayer.


As noted, these changes take effect in February 2020. Existing authorizations will remain active, so there is no need to submit a new authorization form.

T1013 replaced by two new options - watch out for tricky wording

BOTTOM LINE

New process to obtain online access is via the Rep A Client generated form which must be:

1 - a generated form with ref # on Rep A Client

2 - signed by client

3 - signed form uploaded to Rep A Client

If you use the new AuthRep form for an existing client then you will loose your online access.

If you use the new AuthRep form for an new client then you will not have online access, just offline.

This will add time and new workflow steps.

Looking at the silver lining this will enable online access when using at c/o address.

This will also retain online access for deceased individuals.

https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2020/changing-how-representatives-authorized.html

We’re introducing new ways to do authorizations online

We’re introducing new digital processes to simplify and speed up the way representatives request online authorizations.

Please note the upcoming changes to the Canada Revenue Agency’s authorization processes starting in February 2020:

We’re introducing new ways to do authorizations online

We’re introducing new digital processes to simplify and speed up the way representatives request online authorizations.

Please note the upcoming changes to the Canada Revenue Agency’s authorization processes starting in February 2020:

  • We’re introducing a new e-authorization process for online access to individual tax accounts. Representatives will be able to request access using a web form through Represent a Client. Similar to the authorization process for business tax accounts, they will need to scan and submit a signature page that has been signed by their client.
  • The existing T1013 form will be discontinued for access to individual tax accounts. The T1013, RC59, and NR95 will be combined into one form called the AUT-01 Authorize a Representative for Access by Phone and Mail . This form will only be used to request offline access to individual and business tax accounts.
    • Note: All AUT-01s submitted to the Canada Revenue Agency (CRA) will be processed as new requests and override previous T1013 submissions. This means representatives will lose their online access if they submit an AUT-01 form (with the exception of non-residents, as there are no online services for non-residents) .
  • If T1 or T2 software is used to e-submit a request for online access to individual and business tax accounts, a new signature page will be generated. This new page must be signed by the client and retained by the representative for six years.
    • Note: There is no requirement to submit a copy of this signature page, unless requested by the CRA.
  • We’re removing some restrictions for e-submitting an authorization using T1 or T2 software. For example, there won’t be an error message when a ‘care of’ address is used on a taxpayer’s account.
  • We’ll no longer be using barcodes for authorization requests.
  • Existing authorizations for individual tax accounts of deceased persons, will no longer be cancelled. This will avoid having to re-authorize the same representative after the client’s date of death.

These changes will take effect on February 10, 2020. Please continue to use the existing Representative authorization processes until this time.

Contacts

Individual Tax Enquiries
1-800-959-8281

Business Enquiries
1-800-959-5525

I think your wrong you do not have to go through represent a client or send in any forms. You just have to have them sign the form in the software . Then transmit like we did the old t1013 and keep a copy on file
if you send in any paper copy they will only let you get info over the phone.

@pugs1
There are two online authorization procedures:

  1. Rep a Client, generated by the representative
  2. CRA My Account or CRA My Business account, generated by the taxpayer or business owner.

The Rep a Client procedure require the Rep to generate a form for the taxpayer’s signature.

The CRA My Account or CRA My Business account requires no tax signature but does require the level and RepID to be completed. I am not especially fond of this system since it depends upon taxpayer to get everything completed correctly. My clients seem to mess up even the simplest of forms.

the one i use all the time is still with the T1 is still like the old 1013, but have used the represent a client one once or twice

Date: Tue 2020-02-11 7:59 AM
From: EFILE-TED noreply@cra-arc.gc.ca
Re: Significant changes to the Canada Revenue Agency’s (CRA) authorization processes for February 2020

Significant changes to the Canada Revenue Agency’s (CRA) authorization processes for February 2020

Please note that you do not need to renew or resubmit authorizations if you do not want or need to make changes to your existing authorizations. The new processes only apply to new authorization requests or new changes to existing authorizations. As always, online access continues to include offline access such as by phone, mail, fax and in-person.

• By mid-February 2020, a new e-authorization process for individual taxpayers will be introduced in Represent a Client (RaC), similar to the existing business authorization process in RaC. This will provide you with an additional method of submitting authorization requests. This process does not require the use of tax software, but does require the uploading of the completed authorization signature page in RaC.

• For online access, the existing T1013 form is being discontinued. This means new e-submission of authorizations using T1 software will generate a new authorization signature page that will need to be signed by the taxpayer and kept by the electronic filer for 6 years.

o IMPORTANT: The CRA may request signed copies of authorization signature pages to verify that taxpayer consent was given. There is no requirement to submit signed paper versions of the signature pages generated by the software package unless the CRA requests the signature page.

• For offline access, three of the CRA’s authorization forms are being combined into one: the T1013, RC59, and NR95 will be combined into the new AUT-01 Authorize a representative for Access by Phone and Mail. Offline access means that the representative can only access taxpayer information by telephone, by mail, or in person.

o With regard to the new AUT-01 for offline access only, it is very important to not mail, fax or upload this form as an e-submission document if you already have online access. All AUT-01 forms submitted to the CRA will be processed as new requests and will override previous requests. If AUT-01 forms are mailed, faxed or uploaded by electronic filers, representatives will lose their online access.

• E-submitting authorizations using software will no longer be delayed for the reasons that generated response messages W103, W104 and W105. For instance, when a ‘care of’ address is present on the taxpayer’s CRA account at the time of submission.

• Barcodes for authorizations will be discontinued.

• Existing level 1 and level 2 authorizations for individuals will no longer be cancelled when the CRA is notified of the death of the taxpayer. This will avoid having to re-submit a new authorization to re-authorize the same representative after the taxpayer’s date of death. Instead, a new condolence letter will be sent to the deceased taxpayer’s Estate informing it of the presence of authorized representatives on the account, and of the option for an executor to either cancel these or to add new ones.

For more information on the changes to authorizations for individuals, please call 1-800-959-8281. For changes to authorizations for business, please call 1-800-959-5525.

I think you missed this part:

" If T1 or T2 software is used to e-submit a request for online access to individual and business tax accounts, a new signature page will be generated. This new page must be signed by the client and retained by the representative for six years.

  • Note: There is no requirement to submit a copy of this signature page, unless requested by the CRA."

In Taxcycle use the AuthRep form for new authorizations and transmit like old T1013.

Nicole

I agree i do not think you understand what has changed and how to deal with it.

I understand there are essentially 2 ways you could go about gaining T1 authorization now.

For an individual who is over 15 and capable of signing, the easiest and most efficient method is to use TaxCycle (similar to past years) to essentially Efile the completed “Authorization/Cancellation request - signature page”. If the client has signed the form as themselves rather than as a legal representative then online access is generally instantaneous. Some of the old response flags that would hold up the authorization process (W103, W104 and W105) have been removed such that thing like a “care of” address will not delay the processing of the consent.

It seems as though Efiling an authorization that has been signed by a “legal representative” rather than the individual would not be instant and the process would still be held up until the documents confirming legal representative have been received & processed by the CRA. I believe it was the W107 response message that would be returned when a parent, legal guardian, power of attorney, or executor signed the T1013 consent form. You would then have to send in the Will or Power of Attorney document. For a child under 16, although you would get the W107 message, after a few weeks you would be granted authorization without having to send in any documents.

Perhaps someone with recent experience might comment, but it seems the best way to get an Authorization processed for a client who has a legal representative sign on their behalf would be to use the online T1 Authorization Request area of Represent a Client. It looks like if you use the new “T1 Authorization Request” feature you would be able to upload all of the supporting legal documents (Will or PoA) along with the Authorization request.

Update…

It seems in typical government fashion CRA’s new “T1 Authorization Request” feature is unable to process a T1 Authorization Request for a deceased individual. Represent a Client allows you to complete the entire T1 Authorization Request, but when you hit “Next” to submit the info the system returns an error message (Error: Field is not Valid for this Service. T906) on the SIN field.

I went back to TaxCycle and the software allows the submission of an Authorization of a deceased client, but it still gets held up with a W106 message --> Documents must be submitted. At that point you are left on your own to determine the best way to get the documents (Will etc) to the CRA and completely at their mercy as to when they get around to processing your request.

Yep still the same for those clients you do not have an existing authorization for. For deaths post Feb 24 we are good though, access will remain. :+1:

We were advised by CRA:

  • if the executor sent in the will and death certificate to CRA and it has been updated on the deceased’s file, then the authorization will work.
  • if the executor has not sent these in or if they have not been updated, then the authorization will not work and we are to send in the authorization, will and death certificate by fax.

@Rosanna Do you have the CRA fax number for sending deceased taxpayers’ Wills and DC?

Hi Roxane, I am in Manitoba and I have the Winnipeg Tax Centre fax # 204-984-5164. I am not sure if this is where everyone is supposed to be sending the documents. For the past 15 years we have always sent a fax for our deceased clients (T1013, Will and DC) to this number even before the new authorization process. You might need to call and ask for your local tax centre deceased fax #.

Hey Roxane, In my experience, the CRA misplaces or claims they did not receive way to many fax transmissions. My recommendation is to send it via courier and request a signature. Much more expensive, but much less frustration.

John

In our 15 years we have not encountered any issues with faxed authorizations being misplaced or not received. It might depend on the tax centre. Either way, Happy tax season!

See https://www.canada.ca/en/revenue-agency/corporate/contact-information/tax-services-offices-tax-centres.html and Click on your Tax Centre to go the address and FAX number. :+1:

@grangers2016

Thanks for the clarification.

@john4
In the past I had a lot of trouble with CRA Winnipeg Tax Centre misplacing faxed forms. Recently my experience has been much better.

I have also had some spotty periods of paper document handling even when mailed using either Canada Post Registered Mail or Canada Post Venture One whether with or without a signature.

Sometimes the issues revolved around received, processed, but cancelled returns especially CRA GST paper filed returns (2003 to 2007) when ARB Assessed with period end changes.

In some cases I had to escalate an repeatedly lost T1Adj which had been denied in error twice and cancelled without any communication. When I finally referenced the advanced call centre notes, the third submission got stuck on an assessors desk for a couple of months. Eventually through escalation and call back request, a Tax Centre’s assessment manager tracked down the documentation and made sure that it was finalized and the sizeable refund was paid.

There are times when paper filed is the only option. I would really prefer it if we could submit older non-filed returns via Rep A Client to obtain a tracking ID and to have that item enter the paperless workflow.