Proof of Power of Attorney

Versa · February 19, 2021, 2:45pm

I just filed the AuthRep for a new client and her husband who is incapacitated. I have a copy of her power of attorney. Now I have a notice in TaxCycle on the husband’s return that says “CRA is awaiting documents related to the power of attorney”. I called the general enquires line and after several minutes of going through their IVR, I was told that the queue was full and to hang up. Is there any option for me to submit the POA through the wife’s RAC? Or do I have to mail this in separately?

Thanks!

SmallBizGuy · February 19, 2021, 3:03pm

I submitted a T562 for an client who has control over her deceased son’s estate (intestate). I filed the doc via Submit Docs with a letter and a copy of the form attached, although a bit in the reverse order of yours (no difference, really, than filing a DC and a Will). Thread is below:
Deceased client, T562 filed, how best to file AuthRep? - protaxcommunity.com

It took CRA a while to process, but it eventually showed up on RAC.

Suspect a similar approach here will work. BTW - there was NO communication from CRA at all, it just showed up.

Arliss · February 19, 2021, 3:06pm

Yes. Login to RAC and click on “submit documents” and proceed from there.

Capture

Versa · February 19, 2021, 3:21pm

Thank you so much!!! I just submitted through this method. Hope I have access soon.

SmallBizGuy · February 19, 2021, 3:27pm

I wouldn’t count too much on “soon”…(it is, after all, CRA!!) but it would be good if you let us know when it does happen. Can’t remember exact timing on mine, but I think it was around 2 months. Same process as @Arliss outlined.

Arliss · February 19, 2021, 3:34pm

My recent experiences with this method have usually been around a week.

Versa · February 19, 2021, 3:37pm

Argh! 2 months? That’s frustrating. This is a new client to my practice. Looks like her husband was just recently approved for the DTC from 2015 onward. I don’t think her previous accountant retroactively applied the credit but I was hoping to go back and check.

When I filed the AuthRep, I entered “POA” beside the wife’s name on the legal representative line. Not sure if I was supposed to. Hope it doesn’t delay things.

Thanks again!

SmallBizGuy · February 19, 2021, 10:07pm

I filed in December. Likely had something to do with the delay.

Nezzer · February 21, 2021, 2:26am

@Versa
It has been my experience that CRA applies the DTC retroactively to all applicable years - no need to file T1-ADJs.

kevin · February 21, 2021, 3:03pm

They will assess previous years but only if you check the box on the application.

TimParris · February 26, 2021, 4:03pm

Unless the line specifically asks for Title or Position, only put the name of the Individual. It will be a computer matching the name and, if you use a name that isn’t on the POA, you will get a mis-match and have to wait for either a human or you will get a reject.

If you look on the INFO form in TaxCycle (for T1), you will see a section on Representative. The title of the Representative is different. By completing this section, the title will appear in the locations where it is appropriate.

Versa · February 26, 2021, 1:26am

I am happy to report that it has been a week and I now have access on RAC for this client. No notice, it just appeared!

I also noticed that CRA has NOT retroactively applied the DTC for this client so I will have to go back and file T1-ADJ for each year. Not sure if I can do this online in Change My Return.

Thanks all for your help!

snoplowguy · February 26, 2021, 2:59am

You definitely can.

Nezzer · February 26, 2021, 3:01am

@Versa

That sucks. Hope you are charging the client for every year that has to be changed. And tell them why - if they had just ticked that one little box on the T2201 you wouldn’t have to do all this extra work on their behalf. That said, I agree - using Change My Return will probably the easiest way to make the changes.

Arliss · February 26, 2021, 12:16pm

My experience is the CRA just take a while to get around to it.

Not a big deal to adjust 10 years for DTC. Usually quicker to do it for clients once the DTC shows up as available.

Make sure you do all years at the one sitting.

kevin · February 26, 2021, 2:11pm

I agree. I’ve done a few in recent years. I sit down with the Fed and Prov DTC amounts and the line #‘s for each year. It doesn’t take too long once you get going. If you don’t do them all at one time, you’ll have to wait for reassessments to be issued before doing the next so Arliss’ suggestion to do all at once is a good one.

laurie · February 26, 2021, 4:41pm

I have done this as well for multiple years and I think it took about 20 minutes for ten years as I had to look up all the maximum credit amounts for the various years then type them them all into Change my return. The CRA will usually do it on their own eventually but it can take months.

Nezzer · February 26, 2021, 5:59pm

@Arliss @kevin @laurie

I agree it’s not a time-heavy task, but you are taking responsibility for all those adjustments, and opening up statute-barred years, etc. Not to mention, adding another item to your “to do” list, and getting something signed by the client saying they authorize you to do this…
Then, are you charging the client for only 20 minutes of your time? Or, perhaps, doing this pro-bono?

kevin · February 26, 2021, 6:22pm

You don’t open up all the years for CRA other than for the DTC you’re adjusting.