This TaxCycle release introduces the Canada Revenue Agency (CRA) Pre-Authorized Debit (PAD) service for paying outstanding balances on 2015 T1 returns (system opened July 25th). It also includes a preview carry forward from DT Max® T1, as well as new options for working with returns from prior years.
How to get this update
This release is now available as an automatic-update. It was initially released as a full download from our website and a free trial on July 21, 2016.
Who should install this release?
- If you are new to TaxCycle and you would like to try the preview DT Max® carry forward.
- If you would like to try the CRA's new Pre-Authorized Debit online service.
- If you want access to the other features described in these release notes.
Pre-Authorized Debit (PAD) service
On July 25, 2016, the Canada Revenue Agency (CRA) launched the Pre-Authorized Debit (PAD) web service as a pilot project. We are pleased to offer you this new service in TaxCycle T1.
The Pre-Authorized Debit (PAD) web service offers preparers an electronic method to submit a payment to the CRA on behalf of a taxpayer. Use it instead of printing the T7DR(A) which requires your client go to their bank to make a payment.
The service is available for paying an amount owing on current-year T1 tax returns. It is not to be used to pay any other amount due to CRA, such as a balance due on prior year returns.
You can use PAD to make multiple payments for a taxpayer; however, only one request can be active at a time. You cannot make another request until the payment date of the active request has passed. Any attempt to do otherwise will generate an error message.
PAD transmissions use the same credentials as for EFILE, the EFILE Number and Password. If you entered these in options for T1 EFILE, they will work for PAD as well.
PAD is currently only available in TaxCycle T1 2015.
Here's a short description of how it works. For detailed instructions, see the Pre-Authorized Debit (PAD) help topic.
- When a taxpayer has an outstanding balance on their tax return, TaxCycle displays a review message suggesting making a PAD request.
- Click the Quick Fix link to Enter the balance due from the return in part F of the T183. Of course, taxpayers can choose to pay a different amount (less or more) if they prefer.
- Enter banking details and date at least five business days in the future for withdrawing the amount from their bank account.
- The Pre-Authorized Debit (PAD) box appears in the Transmit sidebar to guide you through the rest of the filing process, just like T1 EFILE.
- You must keep the signed T183 on file should the CRA request it.
Preview of DT Max® T1 carry forward
This is a preview release, so there are limitations to the carry forward. We will continue working on it to add more T1 slips and forms as well as carry forward from DT Max® T2.
What can you carry forward from DT Max®?
You can currently carry forward DT Max® T1 returns from 2015 into TaxCycle T1 2016.
Slips: T101, T3, T4, T4A (RCA), T4AP, T4PS, T4E, T4AOAS, T4RIF, T4RSP, T5, T5007, T5008, T5013 (issuer only), RC210, RC62. For all slips, the country field is not carried forward.
Forms and worksheets: Medical, T1-DD
Business statements: Only the business description details, CCA asset name/class, and partner details for T2042, T2121, T2125 and T776
The DT Max® to TaxCycle carry forward works differently than a standard TaxCycle carry forward. Due to the way data is stored in DT Max®, TaxCycle cannot index the DT Max® tax returns in the Client Manager. You must also first extract return(s) from DT Max® and then use a special menu item to initiate a carry forward.
Here is a short list of the steps. For detailed instructions, see the Carry forward from DT Max® topic in online help.
- Extract a client or client list from DT Max®.
(The instructions are included in the online help topic.)
- Open TaxCycle.
- On the Start screen, click on Carry forward DT Max®.
(This shows automatically if you have DT Max® installed on your computer. Or, you can turn it on in Options if you don't have DT Max® installed. Learn how...)
- Work through the steps on screen to open the file you extracted from DT Max®, select the taxpayers or families to carry forward, specify a location to save the new TaxCycle files, and complete the carry forward. (For detailed instructions, see online help.)
Background texture for prior-year T1 returns
You can set up TaxCycle to help you identify current-year and prior-year T1 returns when they are open together on screen. A background texture containing the year shows when the option is checked (which is the default). This texture shows up regardless of the colour you choose for your returns. Learn more...
Start screen display options for prior-year returns
Some of TaxCycle's modules go back several years (T1 goes back to 2012) and the Start screen can feel cluttered with items for the prior years. A few options let you display as many or as few years as you wish on the Start screen. On a large screen, you can show everything. On a small screen, you can hide what you don't need. Learn more...
RC4616 (formerly GST25) added to the TaxCycle Forms module
This release adds the RC4616 (formerly GST25) to the TaxCycle Forms module. This form is for the Election or revocation of an election for closely related corporations and/or Canadian partnerships to treat certain taxable supplies as having been made for nil consideration for GST/HST purposes.