The T1 Adjustment Problem

What’s the holdup? Nearly a year after the Canada Revenue Agency was given 100 days to improve its service, delays in T1 adjustments continue. This has been a thorn in the side of the tax accounting industry as CRA sits on millions of dollars in dispute. No doubt, it’s a financially unhealthy state for tax filers as well. But the degree to which the edict to improve the service has failed, may surprise you. To weigh in with your thoughts, there are two important survey deadlines to consider. Here’s the lowdown:

The Backdrop. The Taxpayers Ombudsperson, Francois Boileau, Ombudsperson concedes that some progress has been made since Finance Minister Francois Philippe Champagne gave the agency 100 days to show improvement. However, the Union of Taxation Employees reports that while CRA’s service standard is 20 weeks for processing complex T1 adjustments, the wait time has stretched to up to 47 weeks. HRreporter.com says the figure from February to April of 2026 reached approximately 49 weeks. 

It’s not certain how many files are currently open. For your clients who are waiting, these delays are more than a minor inconvenience. They are major disruptions in their financial lives.

As Knowledge Bureau reported last fall, The Minister of State who oversees CRA, Wayne Long, was scathing in an interview on CTV in September saying “We hit rock bottom. It can’t get much worse than it is right now.” But it seems it has.

A Chance to be Heard: While the summer is not typically a time when Canadians are thinking about their relationship with the CRA, there is nevertheless an opportunity for both you and your clients to provide valuable input. Unfortunately, the window is closing.

You and your clients have only days to participate in a pre-budget consultation ending September 8 and the one issue that could just make the biggest difference in the lives of tax filers and their professionals is the T1 Adjustment problem. But there is another opportunity, too.

The Complex T1 Adjustment Survey: Mr. Boileau, launched an online questionnaire in June to ask Canadians about their experiences with CRA when it comes to complex T1 adjustment delays. The questionnaire is available here.

Boileau’s department launched a second survey which asks for input on how complaints to the CRA are handled.

The questionnaire closes on September 2. 

Bottom Line. Do it Now: These surveys are open to all Canadians and are important bonus of living in our democracy. Inform your clients of the opportunity to provide input. For you as tax professionals this is a chance to let your concerns come to light. The caveat is that time is running out.

For professionals, providing Canadians with support in their appeals process is a critical part of your role in particular as CRA is moving faster in the direction of using Agentic AI to field questions from taxpayers. Now is the time to shore up your knowledge on post-tax season audit support. 

Fortunately, Knowledge Bureau is offering an important technical CE Summit on September 23 for these reasons. 

Finally, invite your clients to listen to Real Tax News with Evelyn Jacks and Friends to understand their tax system better.