New CRA Authentication Steps

Geoff Currier

A new layer of authentication is going to be added to tax filing this year. The Canada Revenue Agency has introduced an additional step which, it says, is designed to enhance the security of online tax filing. This applies to both you and your clients; individuals, authorized representatives and tax preparers. 

Who Can Use It: This new authentication step available for both NETFILE and EFILE users. Volunteers who are with the Community Volunteer Income Tax Program will follow the same process as EFILE users.  It will require verifying the person who is filing a tax return either for their clients or for an individual who is filing their own tax return. It will be available on February 22, 2027 when EFILE and NETFILE open. 

Renewing EFILER status.  As of January 30, 2027, in order to be able to transmit business authorization and cancellation requests, and file T2 returns, EFILERs  must have:

• Renewed their EFILE account;
• Passed suitability screening; and
• Updated tax preparation software with their newly assigned password.

CRA notes:  if you renew on or after October 19, 2026, you must update your tax preparation software with your newly assigned password. If you DO NOT renew your account on or after October 19, 2026, you may continue to use your current password until January 29, 2027.

Electronic Filing Schedules.  EFILE and ReFILE services have been open at the CRA from Monday, February 23, 2026 at 8:30 a.m. (Eastern Time), and will close temporarily on Friday, January 29, 2027 until February 22, 2027 for transmission of T1 and T3 returns.

Currently, EFILERs can electronically file tax returns for their clients for tax year: 2018, 2019, 2020, 2021, 2022, 2023, 2024 and 2025 initial personal income tax and benefit returns.  They can also file  amended T1 returns for 2022, 2023, 2024 and 2025 using ReFILE.

The CRA says the new authentication process, which involves self authenticating by logging into the individual CRA Account as part of the EFILE or NETFILE process, is designed to enhance security and prevent fraud. This extra step will be optional for the 2026 T1 filing.  Now is the time to speak to your clients about the change coming especially if you have clients who have never logged into their My Account or may be locked out.

If either one of these situations apply to a client, that individual must register or re-register with CRA. There is a process and it can be frustrating.  The information provided by CRA is a bit vague and may be difficult to understand. You may have to assist your clients or even convince them of the importance of having access to their My Account. 

Obstacles for Newcomers or Younger Clients: If you have clients who have never filed a tax return or have not filed in the last 2 years, they will  not be able to register for a CRA account they do.  Making yourself available to provide services for catch up filings before year end can help with digitization requirements at the CRA.

The Bottom Line:  This extra layer of authentication is time consuming. Best to get started in hurdling over obstacles relating to authentication processes now if possible.

Additional Educational Resources.  Invite your clients to listen to Real Tax News with Evelyn Jacks and Friends to understand their tax system better. Available wherever you listen to your favorite podcasts of go to learn.knowledgebureau.com/courses/real-tax-news-podcast