T1DD application has been rejected by CRA

EFILE
1

First of all,I really appreciated to Protax community where I can ask the question to other tax specialist, please listen to my concern

couple days ago, I filed Quebec residences(who already has gone back to East Asia) to Canada Fed and she(my client) is subject to refund, I knew that she would be subject to refund so I added T1DD(Wise bank) for Fed return.
but somehow, Fed sent cheques to her Canadian address(Quebec) instead of using Direct deposit bank, this is NOT first time that Fed reject Direct deposit form for my clients.

Do you know why Fed rejected T1DD(I checked acc, transit, etc# all good) and has decided to send a cheque ? I just realized that I received EFILE activity code 181, I usually receives 180(everything is good IF for 180), but 181, I had same issue for T1DD, I am going to call CRA tomorrow…
does anyone know how to fix this issue ? please advise if you have a chance

Best regards

2

You can not rely on T1DD to be processed that quickly. Personally, I never use this at all. Clients should set this up themselves. Last year I had a client in the UK wait for 6 months to trace a cheque sent to and returned by his old landlord. ($25,000!!!) Finally appeared in uncashed cheques function. Lots of extra correspondence I could not bill for.

Seems to work for the scammers though.

2 Likes
3

Hello Eva, thank you for your response, actually other people have same issue
I did not know it. Yes CRA concerns about scam. I have one more question to you.

after 6 months, uncashed cheque function appears the cheque, then how did you handle to cashout the cheque ? actually one of the client in Japan, requested me to check uncashed cheque and I found few uncashed cheques, but not sure how I should handle, so simply I need to ask my client to call CRA to cash out the cheques ?
Please advise it when you have a spare time

Best Regards

4

You need to have your client complete the PWGSC-535 Undertaking and Indemnity form for each and every cheque that has been lost or is uncashed.

2 Likes
5

Apricated your help I will do it
Thank you

6

There is a form with the uncashed cheque advise at the CRA website, the client has to sign it and you can upload it or fax it to CRA. It needs to be witnessed by someone at arm’s length.

7

Beginning March 24, 2025, The Canada Revenue Agency (CRA) will no longer accept direct deposit updates or changes submitted via EFILE

If you submit a return with direct deposit information, it will be returned back with an error message that says the direct deposit information must be deleted before the return can be resubmitted and accepted by the CRA.

Taxpayers will be able to register for direct deposit using either My Account online, through a Canadian bank or credit union, or by completing a direct deposit enrolment form (paper).