CRA is changing how professionals are being authorized to represent their clients this year. Form T1013 Authorizing or Cancelling a Representative is being replaced effective February 10, 2020 in favor of new digital processes. Plus, there are some new forms on the horizon for offline authorizations and some good news that will especially help when families lose a loved one.
The introduction of new digital processes will allow representatives to request web access through the Represent a Client portal. The new procedures will be similar to the current process for authorizing business accounts. Specifically, both T1 and T2 software programs will now generate a signature page. The CRA has stated that this signature page does not need to be submitted unless it has been requested, however, it must be retained for six years.
The one change that may be most helpful to advisors will affect families who have lost a loved one. Authorizations for taxpayers who pass away will no longer be cancelled upon death. Instead, the existing authorization will stay in place after the client’s death so there is no need to re-authorize the same representative.
However, this new procedure requires careful consideration by the taxpayer who is authorizing the representative and their executors.
Representatives still have responsibilities which include providing accurate information, getting signed consent from the taxpayer, providing all required information (such as SIN’s and RepID’s) and the level of authorization to the CRA. Taxpayers must be informed of what they are consenting to and understand that now the authorization is ongoing, even after death.
These new digital processes should provide a quicker and easier way for representatives to request and receive the online authorizations. When e-submitting these forms there will no longer be restrictions on accounts that are flagged with “return mail” or “care of addresses” and barcodes will no longer be used.
A new form AUT-01 Authorize a Representative for Access by Phone or Mail will now combine the old T1013, RC59 and the NR95 to provide authorized representatives access to client’s accounts by phone or mail. This form only allows offline access to individual and business accounts. Once the form is submitted to the CRA it will be received as a new request and will override any prior T1013 online authorizations that you may have for your client.
Additional Educational Resources: A newly updated Advanced Tax Filing and Planning certificate course is available for pre-order, and will be available on February 15. Train your staff with Canada’s most comprehensive T1 Tax Update to all the changes on the 2019 T1.
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