One of my client who is in their 90s, had their recent tax return reassessed where the CRA stated that the one-time $500 payment for older seniors (T4A - Government of Canada) had not been included on the original tax return. Due to client having dementia and other disabilities, I am extremely careful with making sure that we have all the slips from the client and make sure the same slips are shown on RepAClient.
However, when I looked at the issued slips on the CRA portal, it does not show any $500 Government of Canada issued T4A slips. This is quite frustrating and confusing, considering now I have the clientâs daughter question my firmâs due diligence.
Is there a way that we can dispute this with the CRA or am I out of luck?
I saw this recently for a relative. After filing the authorization, I I looked on Represent a Client and there was no T4A on the system. I talked to CRA and they insisted that there was a slip and actually sent it to me.
I donât think you have a basis for an appeal since we all knew these payments would have been issued. You might have a case for reversing the interest, though, for what itâs worth, based on medical conditions.
Hello,
I have several clients with the same issue. I call the CRA and they told me Service Canada sent the new T4Aâs to the CRA, they just havenât posted them yet. The slips were never sent to the clients. I asked them all to check their bank accounts to see if they actually received the money.
Good luck.
Thank you for the suggestion @kevin and @sewsille1
The adjustment owing balance was $100 and the interest was around $5 so I donât think itâs worth the hassle to dispute the interest. Iâll let the client know that weâll have to look into their bank statements so such type of situation doesnât happen again.
I also had this happen with a client this past December; was annoyed that Iâd missed a slip until I checked online and CRA showed no record of this slip. And here I thought that the âlateâ posting of T3 slips was as bad as it getsâŚ
Same situation as @GuyWhoPlaysGolf.
No such related 2021 T4A on clientâs CRA account as of yesterday.
Contacted CRA about this issue. Agent was intrigued by the fact she could not find the related 2021 T4A , herself⌠but seemed determined to investigate further.
Result
she could not explain why she couldnât see T4A on clientâs account , which by her research existed on some âotherâ CRA system.
Supposedly it was issued by Service Canada at some time end-2021
Actual $500 one time payment deposited in clientâs account Feb, 2022.
Iâm no CPA but if âincomeâ is actually paid in 2022 , should it not be reported on 2022 tax return? instead of 2021 return re-assessed by CRA with interest charge?
The $500 that was paid out that everybody over age 75 got T4Aâs for was paid in the summer of 2021. Iâd fight the addition of the $500 paid in 2022 being added to 2021. Iâd be especially careful they donât issue a 2022 T4A for the amount as Iâd expect they would. I could possibly see it if the deposit was made in the first couple days of January as the CRA would have issued the payment in the last couple days of 2021 but then banking delays over the holidays might result in a 1st business day of 2022 deposit. Not in February however.
It was a mess last year, lots of slips missing, not only T4A, but tuition T2202, or RRSP, but most people seemed to remember those, and for few of my clients, asked to include them, but for income that they know they had, but no slip when you check CRAâs record, they didnât want to include them. I told few that reassessment would definitely happened for the $500 that was paid out for everyone age 75 or over, so it would be best to include the $500 even there was no slip.
Contrary to most of my other eligible senior clients,
her $500 was paid out in 2022 not 2021.
The issue is not whether tax should be paid on the benefit⌠but in the proper year it was received and with the proper paperwork issued by CRA.
Strange though, CRA sure found the time to issue a 3 pages letter requesting the related back tax amount with of course, interest addedâŚ
There could be 2 issues, I heard from few senior clients, asking if the governments are giving 2 $500 benefits as they heard from friends that $500 was received in 2021, and another $500 was received in 2022, but I called CRA and service Canada, only one $500 was ever declared and paid, not sure if there were double payments. Another reason could be, check was not cashed or lost, so another payment was sent to replace the 2021 benefit payment.
In this case, there was only 1 payment as direct deposit to clientâs bank account⌠at my request she scrutinized her bank statements for 2021 and 2022 and confirmed only the one payment was deposited⌠in February 2022.
Unless you have all the bank account access for your client to check yourself, donât, I learned my lesson, my very close friendâs parents, one year when I was doing their taxes, there was a provincial benefit slip that was downloaded ATF, but they said, they didnât have that, they gave me all their bank statements, I spent hours looking at them, didnât see it. Did the return without, later they found out the money was deposited in another account.
Yes that could be a realistic scenario and I certainly hesitate to agree on checking clientsâ personal bank accounts.
On the other hand, it was the CRA agent herself who informed me the one and only senior one time payment was a direct deposit to the clientâs bank account in February 2022.
I canât imagine the consequences if such information would be misleading âŚ
That sounds interesting @taxwave
I figure that itâs not worth the effort to have a look at a clientâs bank statements if the client is not willing to pay for the billed hour. I just found it quite strange that the CRA/Service Canada did not care on uploading a slip detail when it was issued.
I have a client that works in the construction industry where their employer doesnât provide them a physical copy of their T5018 slip, but they always provide a copy to the CRA which is issued under the clientâs HST number. Every year, I have to spend 3 hours of my time and discuss with an inexperienced CRA agent on providing the details and amount to me. This makes the agent puzzled because apparently âthey canât find the T5018 slip on their system.âThen comes the next day where I get a call from a senior agent who thankfully understands what Iâm talking about and they provide me the information.
sigh Sometimes I feel like retiring and just getting hired by the CRA so I can fix their bs lol.
Yeah, when I asked about the T4A, I was told by the agent, itâs service canada that handles those, the payment and the slips, CRA has nothing to do with issuing the slips, just like the T4, itâs from the employer,
T5018âs are not issued in lieu of bookkeeping. One has to keep his own records.
T5018âs donât have to be issued if the amount is less than $500 but the subcontractor is still required to report the income.
If you would just go by T5018âs you might miss that.
