The Future Is Now: Technology Improvements Highlight 2017 Tax Season

If you are using tax software in the 2017 tax filing season, you will be amazed at the cutting-edge features that complement the digital services being offered at CRA this year.  It may be worth your while to become familiar with the new services.

Last year, for example, CRA introduced the “Auto-Fill My Return” (AFR) function.  This service allows you to receive downloaded information right into your tax software from certain T-slips CRA received from your employers or financial institution, rather than entering the information yourself.  This can certainly increase accuracy and time efficiencies.

Marc Labrecque, National Sales Manager for TaxCycle and presenter at this year’s Advanced Tax Update, which wrapped up in Winnipeg today, announced that this tax filing season several new features will be available in the AFR service.  Information will be available from:

• T1204 (Government contract payment) slips
• An indicator that the Foreign property question was answered “Yes” last year on form T1135 (Foreign Income Verification Statement)
• MB479 Rent Assist benefits
• PRPP (Pooled Retirement Pension Plan) contributions
• An indicator if the client is signed up for Online mail
• An indicator if the client is registered for Direct Deposit
• An indicator that another preparer accessed this client’s information on Represent a Client since December 1, 2016

Filing tip:  be sure to check that all the slips representing income you have earned in 2016 are there.  Remember the onus of proof is on the taxpayer to report all income accurately.  Of course,  if you are an early filer, you will have to wait until February 20 to auto-fill your return.  So Netfiling the old-fashioned way – by entering information from slips into your software and then electronically filing. This may be faster in some cases.

Also know that the system will not help you in claiming the deductions and credits you’re entitled to in order to offset your income.

Other new services include an Express Notice of Assessment (NOA) which will instantly deliver the notice of assessment to certified EFILE software programs.  Also look for “ReFILE for EFILE”.  EFILERs will now be able to use software to send adjustment electronic requests for tax years 2015 and 2016, if they have a Level 2 authorization on form T1013 Authorizing or Cancelling a Representative.

Also, starting in February, professional tax specialists can now send payments to CRA on behalf of their clients as well.  That will also save time for the taxpayer:  no need to go to the financial institution to make that transaction.  These pre-authorized debits will require that Part F of the form T183 will provide banking information and gives CRA authority to deduct a specific amount on a specific date for these purposes.

Despite all of the incredible advances in technology, your big opportunity in filing your annual tax return – the most important financial transaction for the year for many families is still the same:   keep your focus on digging for those tax deductions and credits you qualify for and make sure CRA knows about them all.  In that way you can ensure you pay only the correct amount of tax and receive the maximum benefits  you are entitled to.

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