The client requested to file T1-adjustments when those years were not filed through TaxCycle. Not sure how this can be accomplished?
Hi, Abdus …
When I prepare adjustments for new clients, I determine what steps to take based on the complexity of the adjustment. For a simple adjustment, like adding RRSP contribution slips for the 1st 60 days of the year, I would file the adjustment online using “Change my Return” in Represent a Client by simply inputting the change to the specific line numbers.
For more complex adjustments, I recreate the tax return based on information the client provided. I sometimes do this anyways for complex returns to have a better record of the client’s past filings, or I’ll manually update the 5-year summary history from past assessments.
NB: It is sometimes a challenge to recreate a return when all you are provided is the T1-Summary and tax slips – I had returns where some problem solving was involved to figure out the source from unidentified figures. Once the data matches the filed tax return, the Notice of Assessment and Option C Assessment Details from Represent A Client, I mark the file as being filed (by another practitioner). TaxCycle should automatically create a snapshot of the filed return. If not, you would then manually create a snapshot of the return before updating it with any changes required.
Once the changes are all entered, you would update your T1-Adjustment form with changes captured from the Snapshot. The beauty of recreating the return is having the software auto generate the T1-Adjustment. As you probably already know (but in case you don’t), if you are using ReFile, the T1-Adjustment page is NOT submitted to CRA, but is used as your record showing the changes made in the tax return.
If the client’s previous return was electronically filed (e-file or netfile), and there are no exclusions from electronically refiling the return, then you should now be able to Re-file this client’s return. Insure that Re-file worksheet is completed, and have the client sign a new T183 form (with the ‘R’ after the Tax Year).
If the previous return was paper filed (or if there are Exclusions), then you would be required to submit a paper T1-Adjustment, along with all the receipts and applicable schedules.
As a final note, in situations where you need to recreate a client’s return for ReFile, AND you don’t have ALL the information previously filed (even though it isn’t related to the adjustment), like copies of forms T776, T777, T2125, etc , that were filed with the previous return, it may be wise to paper file the adjustment or file online through Represent a Client. On forms like these, the data entered on these forms is submitted to CRA in the e-file /refile process so you need to maintain consistency (you’ll see this when you review the “.Tax” file that is sent to CRA in the efile / refile process).
I’ve successfully Re-filed several returns completed by other practitioners using this method on Profile tax software, so I know it works.
Hope this helps.