My client received a T1 reassessment for 2020. No change to any figures. Explanation “We changed your return to recalculate support payment arrears.”
Client hasn’t paid child or spousal support for 10+ years. Any idea why this occurred?
Probably the same reason they have been adding fictional income to some of my clients’ returns - they are trying to generate tax revenue any way they can, to make up for all the government spending in the last year and a half. CRA doesn’t have to provide any support or proof for this additional income - it’s the taxpayer’s responsibility to prove the income DOESN’T exist (or file a T1 ADJ multiple times until CRA accepts it…). Meanwhile, the federal government holds on to that cash for an extra 6 or 12 or 18 months, and has it available for their own use…
I’m almost at the point of suggesting a class action suit against CRA.
(In your case, I think they just screwed up and didn’t realize there was no tax revenue to be gained)
CRA may have just updated their records to show no support arrears (or some other CRA carryforward figure).
I also received the same notice myself from CRA, with no changes to the assessment. I had not paid any support payments. This is probably a programming error in their analytics and nothing more.
My husband got one too - they “corrected” his Canada Training Credit. Turns out his original 2019 NoA didn’t show anything for CTC(??!!)
Have received the same re-assessment for a client. Wrote to CRA to request explanation.
Regarding the reassessments where the only change was the Canada Training Credit limit, this is because CRA had a system issue which they corrected in May and it took them some time to get around to identifying and reassessing any that were affected.
In April, I was checking a Notice of assessment against a return and I noticed that CRA had not given the client the $250 CTC limit for 2020. I asked our CRA certification contacts if it was possible their system was using total income instead of net income as their condition (income not exceeding $150,473). It took a month for them to get an answer, that they discovered a system issue, but I have since seen the reassessment where the only change was to add the extra $250 to the CTC limit. CRA said they would be reviewing both 2019 and 2020 returns.
For any returns where you attempted to claim the CTC in 2020 and were either rejected on EFILE (error 561) or had the credit removed on assessment by CRA because they had no CTC limit on file and for which they have now established that the client does have a limit, I suspect you would have to request an adjustment to the 2020 return to claim it.
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Thank You for that clarification.