RRSP Spousal Rollover

T1
1

I have a complicated issue I am trying to deal with. I’m probably over my head here. I am a CPA but not a tax expert. I am not a Taxcycle user, but if I were a pro I certainly would use Taxcycle.

Here’s the situation:
My son passed away from lung cancer in June 2017 leaving a spouse and an infant daughter. His spouse is his executor. He had three RRSPs which I’ll refer to as #1, #2 and #3 below…

RRSP #1:
T4RSP received in 2017 in son’s name.
Reported on son’s 2017 final return
The money was transferred by the financial institution to spouse’s RRSP in first 60 days of 2019.
No T4RSP was issued to spouse.
Reported on spouses 2018 return as if a T4RSP had been issued with an offsetting transfer.
A T2019 was included with the spouse’s return.

RRSP #2:
T4RSP received in 2017 in son’s name.
Reported on son’s 2017 final return.
The money was transferred by the financial institution to spouse’s RRSP in 2018.
A T4RSP was received by the spouse and was reported on spouses 2018 return with an offsetting transfer.

RRSP #3:
The money was transferred by the financial institution to spouse’s RRSP in 2018.
A contribution receipt was issued by the financial institution in 2018.
A T4RSP was received by the spouse and was reported on spouses 2018 return with an offsetting transfer.

Subsequently a T1ADJ was filed to reduce son’s 2017 RRSP income with respect to RRSPs #1 and #2 which were later reported on his spouse’s 2018 return. That T1ADJ was filed in Jun 2019. In Aug 2019 the estate received a letter acknowledging receipt of the T1ADJ and informing that this was a complex matter that would take a longer time to process. Since then there has been no further correspondence. I called in Oct 2019 and was told I would just have to wait.

I’m getting worried that this has taken so long that it might get more difficult to sort out. Any advice would be very much appreciated.

2

Whenever I am faced with lengthy CRA wait times on time sensitive matters I file a Service Request online. If that doesn’t speed up the process go to the Taxpayers Ombudsman to obtain assistance in getting your Service Request and Adjustment made a priority.

3

The form is RC193

4

Yes, 2019 is a long time to wait and exceeds CRA’s standards for getting things done. By now you should be able to call general enquiries and have them escalate the issue. You should be able to request a call back from someone more senior who can give you a timeframe of when it might be resolved or whether more information is required.

5

Here’s an update…

I called CRA and was transferred to a senior agent who told me the T1ADJ case was closed in Aug 2019. CRA did not issue any correspondence regarding this. I have called about this several times since then and was never told this until today. I’m shocked that CRA did not report this in writing.

The agent I spoke to today explained that I need to contact the financial institution (#1) and have them delete the 2017 T4RSP issued to my son and issue a T4RSP for his spouse for 2018. Then I should submit a new T1ADJ.