As with every May, tax practitioners across the country can finally breathe a sigh of relief. It’s a bit of a whirlwind finish each April, but before you know it the office is calm once again, and we can catch up on all those other side projects which have been put to the side. Thanks to all our clients for your help and understanding this season!
By now many of you may be receiving your Notice of Assessments (NOA) from CRA, detailing what was submitted for your tax return, and any refund or balance owing. One thing that has come up a few times this year is payments not being applied to accounts in a timely manner. For example, we submit the tax return, inform the client of what is owing, the client pays the tax owing immediately, but when the NOA shows up, it still says the balance is due.
Per CRA, this is because their NOA system (in other words, the processing of EFILED returns) works much faster than payments can be applied. So the result is that even though you paid them already, they may still say you owe it on the NOA as it is printed before the payment can be applied. This can be alarming for certain clients, as they may be worried that their payment was not applied properly. To make matters a little bit more confusing, the CRA will not issue any receipt of payment, so unless you investigate further you are kind of in the dark. However, for the most part you don’t have much to worry about. We have not encountered a misapplied payment this year, and if you are unsure and want to check, you can always log in to your My Account with CRA to check if you have any outstanding balances (in addition to other information, such as contribution room, or installments balances). If you are having any trouble with this, just give us a call. We’d be happy to check for you.