2021 tax season has officially launched
TAX ALERT |
Authored by RSM Canada
February 22 marked the official launch of the 2021 tax season, and the Canada Revenue Agency (CRA) introduced several welcome measures aimed at ensuring an efficient and fair experience for taxpayers in light of an unprecedented 2020.
These measures include:
- Adding additional call centre agents and extending call hours at various locations across the country to increase call centre capacity and alleviate the significant wait times many Canadians are facing when calling the CRA;
- Providing targeted interest relief and more time and flexibility for Canadians to pay tax debts where they (i) received COVID-19 related income support benefits and (ii) earned taxable income of $75,000 or less in 2020;
- Making the deduction for home office expenses more accessible and easier to claim for employees that worked from home due to the COVID-19 pandemic;
- Offering small business owners and self-employed individuals the opportunity for virtual visits by phone or videoconference with a CRA Liaison Officer to help them understand their tax obligations;
- Providing additional support to community organizations that offer free virtual tax help for individuals with modest income through the Community Volunteer Income Tax Program (CVITP); and
- Starting a new pilot program that offers grants to CVITP and Income Tax Assistance Volunteer Program clinics to assist with the costs of running these community tax clinics.
The CRA continues to encourage online filing of tax returns, as it is the most efficient and secure way to file taxes. While support will continue to be provided for those who choose to paper file their returns, the CRA may take 10 to 12 weeks to process paper returns this year due to COVID-19.
With last year’s security breaches in mind, the CRA is urging Canadians to call the CRA if they suspect that they have been the victim of identity theft or fraud so that they can validate their account and discuss additional security measures.
These measures suggest that the CRA is attempting to enhance their service offerings rather than extending deadlines for filing tax returns. Currently, the CRA has not announced extensions to tax filing deadlines, so the T1 filing deadlines remain unchanged. Each individual should plan to file his or her T1 return by April 30, 2021 unless the individual or the individual’s spouse is self-employed, in which case the T1 return is due by June 15, 2021, although any tax owing must be paid by April 30, 2021.
Call us at (519) 426-5160 (Simcoe) or (519) 842-4246 (Tillsonburg) or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Jen Reid, Danielle Wallace and originally appeared on 2021-02-26 RSM Canada, and is available online at https://rsmcanada.com/our-insights/tax-alerts/2021-tax-season-has-officially-launched.html.
The information contained herein is general in nature and based on authorities that are subject to change. RSM Canada guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM Canada assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM Canada Alliance provides its members with access to resources of RSM Canada Operations ULC, RSM Canada LLP and certain of their affiliates (“RSM Canada”). RSM Canada Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM Canada. RSM Canada LLP is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms. Members of RSM Canada Alliance have access to RSM International resources through RSM Canada but are not member firms of RSM International. Visit rsmcanada.com/aboutus for more information regarding RSM Canada and RSM International. The RSM trademark is used under license by RSM Canada. RSM Canada Alliance products and services are proprietary to RSM Canada.
Good Redden Klosler a proud member of the RSM Canada Alliance, a premier affiliation of independent accounting and consulting firms across North America. RSM Canada Alliance provides our firm with access to resources of RSM, the leading provider of audit, tax and consulting services focused on the middle market. RSM Canada LLP is a licensed CPA firm and the Canadian member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM Canada Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how Good Redden Klosler can assist you, please call us at (519) 426-5160 (Simcoe) or (519) 842-4246 (Tillsonburg).