I got a new client for 2023 that showed a non-capital loss carryforward on the AFR but they denied the loss carryforward.
I called CRA and they confirmed I should be able to claim it, but they couldn’t do it over the phone.
When I went online to apply the loss again I got this message:
Anybody had this before?
I am afraid if I do the adjustment through Re-File, they will reject it again.
Any ideas how to solve this?
Have you checked on RAC? CRA’s summary should show the history of non-capital losses. The prior year’s Notice of Assessment may also indicate the balance carried forward. I never trust what CRA tells me on the phone.
Yes I did. Online has the same history as the AFR.
Maybe a glitch in the EFILE system? Try calling the EFILE Helpdesk?
That is a good idea. I’ll try that. Thanks.
Didn’t work. They don’t have access to that.
I ended up mailing a T1 Adjustment.
I guess we have to wait 6 months or something to get it resolved. Oh well.
Instead of mailing T1adjustments, fax it to 204-984-5164. Cuts down on the processing time and you have a confirmation number via your fax machine and proof of submission.
Can’t wait for the day we can use the online submission portal for T1 adjustments.
Thanks. I’ll have to use that next time. I already mailed it 
Please check the taxpayer’s account to see if there was an event which blocks certain carry forward. For example, a bankruptcy or non-residency.
If the loss happened before, the loss can’t be claimed after. The computer will deny the deduction. But the unclaimed loss has to remain on the account.
You may need to discuss the situation with your client, but I have to remind you of the first rule of support; Clients’ lie.
You were right on the money. She went bankrupt. Thanks for letting me know that could have been the reason.