Millions of Uncashed Cheques Tapped Thanks to The Taxpayers’ Ombudsperson

In times of high inflation and a down-trending economy (like today) Canadians pull out all the punches. They scrimp, they save and they cut corners where they can. Many also started to rely more heavily on the Canada Revenue Agency (CRA) for benefits and importantly their public advocate with the CRA: The Office of the Taxpayers' Ombudsperson (OTO), who fielded a record number of urgent requests this year and prompted millions in uncashed cheques to be cashed.  OTO has also created an important new opportunity for tax advisors.   

OTO’s job is to improve the service that the CRA provides to taxpayers by reviewing service-related complaints. They also look at issues that can affect more than one person, or a segment of the population.  According to their annual report, OTO received a record number of enquiries and complaints. As noted on the OTO’s website:

More importantly, we made a significantly greater number of urgent requests for assistance to the Canada Revenue Agency (CRA), for all of our fellow citizens who told us they had experienced financial hardship and needed urgent action from the CRA.

Millions More Accessed – Thanks to The Office of the Taxpayers' Ombudsperson Does

You know the uncashed cheques available to some Canadians in the My Account section on the CRA website? OTO helped get that started.

OTO raised the issue to the CRA – previously only taxpayers or their legal representatives were able to view and request uncashed cheques from the CRA, but that negatively impacted vulnerable Canadians who had trouble managing their own affairs.

Tax advisors can now help more financially vulnerable clients

Then CRA indicated in the spring of 2022 it planned to expand access. They explained the change will allow Level 1 and 2 representatives with view access of uncashed cheques and Level 2 representatives, with the ability to request a duplicate payment.

Since the uncashed cheque feature was launched in February 2020, as of March 31, 2022, over 1.8 million payments valued at $763M were requested by Canadians.

A Big Issue in 2021/ 2022: Guaranteed Income Supplement (GIS)

OTO received complaints (starting in August 2021) that COVID-19 benefits had impacted some people’s GIS and Old Age Security (OAS) payments.

Canadians didn’t understand the inconsistencies on how the GIS was impacted by the benefits – and this seemed to differ on whether the Canada Emergency Response Benefit (CERB) payments were administered by the CRA or Service Canada.

This issue quickly became a hot topic and the government set aside $742.4 million to offset the GIS and OAS claw backs. These payments were intended to reimburse the losses suffered by affected taxpayers, and will not be counted as taxable income, according to the OTO report. It adds that:

Additionally, An Act to amend the Old Age Security Act (Guaranteed Income Supplement) received Royal Assent March 3, 2022. This piece of legislation amends the Old Age Security Act to omit payments from COVID-19 benefits as income for the purpose of calculating GIS or “allowances payable” following June 2022. This includes deducting amounts received under the CERB, Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), the Canada Recovery Caregiver Benefit (CRCB) and Canada Worker Lockdown Benefit (CWLB) from calculation for applicable benefits.

How OTO Can Help Taxpayers and Recipients of Benefits – Urgent or Standard Processes

OTO notes two priority trees in how they handle communications :  the Urgent Process and the Standard Process.  It notes:  “we review complaints from people who are in a compelling situation, such as experiencing financial hardship. We understand that many of these situations require urgent action; therefore we prioritize these complaints and we will not direct you to complete Step 1 or 2 of the CRA’s service complaint process. We address these complaints by facilitating contact between you and the CRA.

If you are not in a compelling situation, and you have completed Step 2, yet you’re not satisfied with the quality of service you received from the CRA, submit your complaint to us.

For more please see their website.

Bottom Line: Advisors, OTO is another tool to have in your arsenal to help clients in what we expect will be a really tough year for many people in 2023. You will also want to consider taking the Advanced T1 Tax Update, featuring three training options in 2023, to be prepared as possible in your office, too,  for increased communications from clients seeking assistance from the CRA.

1. The CE Summit Event Only – January 18 (Virtual) or February 7 (Toronto – Pearson Convention Centre)       
   1. To get your online event pass – click here for January 18 and click here for February 7
   2. To see the speakers and the agenda – click here

2. The CE Summit Plus the Advanced T1 Updated Course  
   1. A comprehensive online course filled with retention quizzes to test your knowledge of 2022 tax changes plus the recorded presentations.  Completion deadline is February 28.
   2. Add this certificate course now for yourself or your team members – Each only $395.   Enrol Here
3. The Hard Copy – Advanced T1 Update Knowledge Journal          
   1. A great desk-top resource in your office – Each only $195 Order here.

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