February 18, 2011


Here is my annual letter again to make it easier to gather the relevant papers/slips for filing the tax return for 2010 before April 30th, 2011. If you are self-employed, the deadline is June 15th, 2011 though, even if you wait to complete your return by June 15th, please remember that the taxes (if any) are due by April 30th to avoid interest charges.

For my corporate clients for whom I have prepared the T4s, T4As and T5s – PLEASE, PLEASE treat this as if you received these slips from another financial institution and print the slips I emailed you before February 28th deadline (slips 2 and 3) and DO NOT FORGET to include these along with your other slips. If you do not provide these slips I could very well miss them as I have no electronic way of linking this up (corporate with personal) except from my memory.

Here are a few helpful hints that will make the filing easier this year for both you and for me. Please read through the following points before you submit your tax details to me this year.

1. Remember to go through this list and bring all your information and slips to me together. It is difficult when items are brought separately and it leads to delay in filing. Please bring information for your whole family at the same time especially if you have kids going to university/college and you are eligible for the tuition fees deduction. It will be a good idea to go through the slips and arrange the slips according to the SIN numbers for each individual to make absolutely sure you are not missing any. CRA has started penalizing heavily for omitting slips.

2. Remember to give me a total (you keep the receipts) of all your charitable donations.

3. I need all your medical information. Please total your receipts (you keep the receipts) and provide the totals separately for medical expenses and separately for extended health premiums (e.g. Blue Cross etc.) expenses incurred. Please do not include any MSP premiums as they cannot be deducted.

4. Student tuition information must be provided. If you have received the T2202A by mail, provide that, otherwise, go online to the educational institution website and print out the original (not the draft version) T2202A form. Make sure it shows the 3 columns A, B and C. Please ensure that the student has signed the original form if they would like to transfer the fee deduction to the parents.

5. If you have investment income, collect all your receipts and provide me with all your T3s, T5s and T4A slips. If you are not sure you have them all, you can call CRA at 1-800-959-8281 and provide them with your SIN# and verify that you have all the correct receipts. This is very important as CRA will penalize you for not submitting any information. Note: T3s and T5s are normally sent by fund companies only by the end of March, so please wait for these before submitting your information to me.

6. If you have rental income, or are self-employed, or if you are eligible for the (T2200) employment expense deduction, please fill out the forms that are attached to this email and bring these forms in with your slips. These forms will ensure that you have not missed any information and hence, will speed up your filing. If you had the same rental or self-employed income for the previous year (2009) you can take a copy and compare it to make sure you have not missed anything.

7. Since it's a busy time, I find that the best time for me to return phone calls is Mon- Sat between 2:30pm and 4:30pm.  These are my preferred times, but I will certainly accommodate other timings if this is inconvenient to you or if you are at work during these times.

8. Your RRSP deduction limit:  Please see the last line at the very bottom of the previous year’s assessment notice you received after filing last year’s return and it shows the amount and that is the limit and the figure you have to go by. You can call CRA at 1 800 959 8281 and a special extension is available during the RRSP season if you still have doubts.

9. I have attached along with your tax return form T183 for your signature. Please sign it and return immediately using the self-addressed envelope, to enable me to file your return in a timely manner. Remember that as per CRA rules, I cannot file until I have your returned signed T183 form. Please sign part E and F.

10. From this year onwards - Authorizing or cancelling a representative can be done on line. This authorization form allows me to access you r accounts on- line to get information about your returns and to make changes if necessary. This form eliminates the need to call CRA and the time taken to verify the identity of the tax payer. This is not mandatory but helps a great deal and is a tremendous time saver. You know what I mean if you have tried to call Revenue Canada for information!!!.

As part of the T183 requirement, when you get this year’s completed tax return back from me, please take a few minutes to review it carefully to make sure that all slips have been accounted for. This will avoid any CRA penalties for missing slips or slips entered incorrectly like typing errors. You will find a slip summary sheet attached.  We try our very  best to be as accurate as possible and so far our success rate has been excellent but sometimes mistakes do happen while entering the data. This is why I mentioned earlier in the letter to separate the slips according to SIN numbers and make sure you have not missed anything.  Also there were a few cases where we found previous year’s slips included with the current. If you missed a slip in a previous year, that year’s return has to be amended and it cannot be added to this year. CRA does the cross check much later after your returns have been efiled and if you miss any slips and you owe them more taxes they will charge you an interest for the taxes owing and CRA has timed it well that you get this nice letter just before Christmas!!!. This can be avoided if you take a moment to please make sure your returns are complete and all slips and deductions have been accounted for.

Looking forward to working with you this tax season.

Yours Sincerely,
K. Jacob
J M Accounting Ltd.
Tel: (604) 941-0778