Processing times at CRA tax centres started to increase in November 2016 when Revenue Minister, Diane Lebouthillier, announced a major restructuring that was intended to streamline tax return processing and taxpayer-filed adjustments. Unfortunately the opposite occurred and tax centres overburdened themselves with work, which lead to increased wait times for income tax assessments, T1 adjustments, and other such requests, requiring the CRA to review (and re-review) taxpayer information. In early 2016 processing times were generally between 4 and 8 weeks, but as of today, Reid Financial Strategies has several requests that have been in process for over 12 months – some of which are disability tax credit applications that must go through two different processes before the credit is applied to the client’s tax return. Another ‘pain point’ is the processing times for T1 adjustments, which can take anywhere from 4 to 6 months.
Fast forward to mid-2017 the processing times were over 6 months, so it is evident that they are speeding up; however, do not expect to see the ‘light at the end of the tunnel’ quite yet. In the end it is important to remember that taxation laws in Canada are changing rapidly due to new technology and laws, and the CRA is trying to keep up.
Patience & Persistence: The Key to Working with Canada Revenue Agency
Please have patience when dealing with the CRA, and rest assured that when you work with Reid Financial Strategies, we will ensure that you receive all the credits and deductions that you are entitled to. We will be persistent on your behalf!
Other topics that we feel are important to discuss with our clients are CRA assessment errors. For example, calculation errors, missed steps (on the T1ADJ form), and dollar values that do not match the adjustments, can cause the need for a second adjustment and subsequent wait times (as discussed above). At Reid Financial Strategies we do everything we can to ensure your assessments, and reassessments, are processed correctly by including all relevant backup documentation, as well as a “letter of direction.”
Tip: Always review your assessments (and reassessments), and check the numbers against your original tax return. If there are any differences, please let us know and we will make sure these errors are rectified.
If you feel you have errors on current or past tax returns and wish to investigate further, please contact us for a Complimentary Tax Review.