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T1013 EFILE for first time filer


#1

We had quite a few new filer returns filed last year. As new TaxCycle users we EFILED the T1013 forms and get the transmission confirmation message “CRA will process the T1013 once the client’s tax return has been processed”. We assumed this would mean that once CRA had assessed the return and issued the NoA, the T1013 would be automatically processed and we would get online access, but this isn’t the case. We now need to go through the process of printing, signing and transmitting T1013s for these clients next tax season as the forms they signed last year are now older than 6 months.

Now that we know this is the case, we will make a note to go back and file the T1013 a few weeks after the return is filed, but we won’t actually know if the NoA has been issued and therefore whether filing will be successful so we’ll still be playing a guessing game.

Maybe I’m the only one who finds the message misleading, but it seems like it should better reflect the fact that while it may have successfully been transmitted, it won’t actually be processed by the CRA and we won’t get access unless we EFILE the T1013 again.

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#2

I’ve never had that problem. For new clients, I e-file the T1013, the client’s records are updated by CRA, and I then have access.


#3

When do you EFile it? Before or after filing the return? These are ones where the T1013 is filed as the first thing that is done after setting up the file, and the message in the above image is received. We know we won’t be able to AFR or anything so that’s fine (although I don’t understand WHY CRA think someone doesn’t exist until a return is file but that’s another story).

Also I’m not just talking about new clients - generally they are fine. I’m talking about new clients who have never filed a Canadian return before.

I’ve been in to check several clients over the last week or two and have no online access. When I check the T1013 submission, they all had that same confirmation message which suggests CRA haven’t in fact gone back and processed the T1013 like we assumed.


#4

I have no clients who are first-time filers. This may be CRA’s first contact with them aside from issuing a SIN, so the T1013 process may well take longer.


#5

It’s not that it takes longer - it’s still instant once they file a return. It’s that CRA doesn’t even go through the process at all if you file BEFORE you file a return, even though TaxCycle indicates that they are. Unless I’m just really impatient, expecting that CRA will have processed T1013s filed over 9 months ago… (although that wouldn’t surprise me…).


#6

You are correct… first time filers ever … cra will only process the t1013 once they have processed the return… it has been this way ever since I can remember

What I do is ask… have u ever filed a return? If answer is no… we file tax return and I ask the client to send me an email or txt once they read noa… at that point I transmit the t1013… that u had client sign when they were in.

This way access is open for next year and the follow up is the clients responsibility to get back to me.

Rachel


#7

Thanks - we are going to be updating our processes next tax season so that we delay the T1013 filing.

My point though is that the submission message received should reflect what actually happens so that when they inevitably slip through (or when a client is so clueless that they don’t even know), it is obvious that we need to go back and file it again.


#8

I had one “new filer” last tax season. I e-filed the T1013 in TaxCycle, but could not e-file the T1 because he needed to file for 2009 (and every year since). I “paper filed” his 2009 return, and after 5-6 weeks, got access via RAC. So, the e-filed T1013 seems to have worked.
I also had 2 new clients who were children (under 18), but had filed tax returns before. After e-filing the T1013s it took 3-6 weeks for CRA to approve online access.
So, I don’t think the Tax Cycle message is incorrect. But, each case may be handled differently by CRA.


#9

Taxcycle would have no way to know if the new client has ever filed before - only CRA has that knowledge. Hence the message can’t be altered - it’s up to the client to let you know that they’ve never filed before.

This would be a good suggestion to put in front of CRA though!


#10

It must know something to return that message though…

There’s lots of the things the CRA could change to make it easier for everyone! I really don’t understand why the CRA thinks you don’t exist until you file a return, even though you have a SIN and the CRA will likely have T4 or other slips on file for you!


#11

I just had a new T1 client yesterday, and got the same message (as per your initial post @rebecca). I didn’t pay attention to the message when I e-filed the T1013, but then, when I logged into to RAC, it said I was not authorized for this taxpayer. So, I will let you know if I have the same problem getting access after filing the T1.


#12

Please do, Nezzer! I’m starting to think I’m the only one with this problem! :grin:


#13

You aren’t the only one. When i worked earlier this year we had a lot of first time filers. T1013’s would be processed a couple of weeks after the T1 was processed. Been that way for a while


#14

It knows that CRA accepted the transmission. That is all.
Think of it as an email system. You send an email, you know it was received because it didn’t bounce back to you.
Taxcycle is telling you “It got there”
Now CRA has to process what you successfully sent.


#15

@rebecca
T1 filed Jan 13, 2019
I haven’t been checking regularly, so I don’t know exactly when access was granted, but as of today (Feb 8, 2019) I have access to the client’s CRA account via RAC. The NOA was issued on Jan 24, 2019, so I might have had access sometime in the last two weeks. In any case, I did NOT have to file another T1013 or anything. Hope that is informative!
:smile:


#16

Thanks for the update! I’m going to go back and check the ones I filed last year just in case, but I’m wondering if maybe there is some unrelated issue they had in common which means they weren’t processed as it wasn’t many!

Will definitely keep an eye on them this season though :slight_smile:


#17

I had the same issue this week with a client who needed to contact CRA and update something on his file, not a first time filer. He was able to authorize us while he was on the phon with them.