Sch3 excluded from Efile

EFILE
1

S3: Returns for clients declaring [capital gains or losses] are currently excluded from EFILE. This exclusion will be removed in an upcoming TaxCycle release.

Any idea when this will be removed from TaxCycle or is it still an issue with CRA?

2

This is a CRA acceptance system update that needs to happen before they can accept capital gains related tax returns. As soon as they provide us a date for the system updates to handle capital gains related filing for T1 (and T3) and then certify applicable test cases impacted by that we’ll plan a release(s) around that.

~ Rob

1 Like
3

Thanks Rob,

Is there any way to to efile the spouse of a client who has capital gains or losses?

It seems impossible to sign off on the S3 diagnostics on the client’s return who has the capital gains. Their spouse’s return would be completely fine except I can’t efile those returns because it tells me to “resolve” critical EFILE errors on the spouse’s return before I can transmit.

Is there any workaround for this?

4

If they’re in the same file, there is no workaround if you have the capital gains related warnings blocking transmission that can’t be signed off for the non-impacted spouse return. If you wish to detach the spouse with non capital gains/losses as a separate file and the proceed to file - you could utilize that as a workaround to file that particular return. Instructions here under " Uncouple/Detach a Return" section.

~ Rob

5

Thanks for that confirmation @Rob

The process is a little messy, but does seem to work.

  • Prepare tax returns for couple as you normally would
  • Click on “File” from top menu bar —>Detach Taxpayer (save both files)
  • Review the return for the (efile eligible) spouse with no capital gains
  • Print Return & T183 (wait for T183 to be signed)
  • Efile/Transmit return after receiving duly executed T183
  • Save file
  • Close all open files
  • Open file for the “head of family” (or whatever term is politically correct)
  • F5 to Switch to Spouse
  • Select spouse from existing file
  • Let TaxCycle Re-Couple the returns, renames the file, and deletes their individual files
  • Review Returns again to make sure nothing has changed
  • Check under the Transmit tab for the return for the spouse with no capital gains to make sure efile status shows T1 EFILE - Transmission successful (or check for Green Happy Face)
  • IMPORTANT - Go to schedule 2 of client you efiled and “Clear Form” or else you get a bunch of Review messages for that individual telling you not to complete Schedule 2

Phew… :slightly_smiling_face:

1 Like
6

What a CRA boondoggle! Can you imagine the systems, documentation and policy reworkings behind the scenes for CRA and the Financial Institutions? Probably tens of millions of dollars in wasted effort!

7

Thank you @Rob greatly appreciate the quick answer.