Principal Issues: How can a taxpayer obtain tax information contained in tax returns for previous years?
Position: The taxpayer could consult My Account for Individuals or call the CRA automated line or the CRA Individual Tax Enquiries line. Alternatively, a request could be made to the appropriate Tax Centre.
Reasons: CRA procedures and internal systems.
FINANCIAL STRATEGIES AND FINANCIAL INSTRUMENTS ROUNDTABLE, OCTOBER 7, 2020
2020 APFF CONFERENCE
Question 8
Availability of CRA tax information for previous years
Over the years, a taxpayer may have had to change accountants or tax preparers for a variety of good reasons (death or retirement of the accountant, relocation of the taxpayer, major changes in the taxpayer's financial situation requiring more specialized expertise, etc.).
Furthermore, over a period of 15, 20, 25 or 30 years, it is quite possible that tax elections were made when the tax returns were prepared by the former accountant or that the information regarding certain deductions that were claimed at the time escapes the memory of the taxpayer who no longer has the tax returns from 15 or 20 years ago. Let us demonstrate this with two concrete examples.
i) The taxpayer owned 3 separate rental properties in 1994. His accountant at the time made the February 22, 1994 election on one of the three rental properties in connection with the elimination of the $100,000 capital gains exemption. Not having kept a copy of his 1994 tax returns, the taxpayer is unable to tell his new accountant on which of the three rental properties he owned the election was made.
ii) The individual has owned a triplex since 2001 which was used entirely for rental purposes. In 2020, the individual wishes to take over the lower unit (40% of the floor space) to make it his principal residence. In order to avoid the very significant tax consequences of the change of use of the lower unit (40% of the building), his current accountant for five years absolutely needs to know if capital cost allowance was already claimed when he was not preparing the taxpayer's tax returns. If so, the subsection 45(3) election to defer the large capital gain on the change in use will not be available. The taxpayer used the services of three or four different preparers from 2001 to 2015 and is missing returns for several years prior to 2010.
Questions to the CRA
a) In light of the concrete examples above, can this specific tax information be obtained by the new preparer and for how many years?
b) Can the CRA provide more general information on the specific information that is available or not available for previous years?
CRA Response to Question 8(a)
It is possible for a taxpayer to obtain from the CRA certain tax information relating to previous taxation years. In particular, a taxpayer may be able to obtain a copy of the taxpayer’s prior years' tax returns and the forms that were attached to them, depending on their availability, which will depend, among other things, on the taxation year in question. If not available, the taxpayer could obtain from the CRA printed forms called "Proof of Income" where the essential information from the tax returns filed with the CRA appears for the taxation years from 1988 to 2019. This Proof of Income can be viewed and printed by a taxpayer using the "My Account for Individuals" option at www.canada.ca/my-account-cra.
With respect to Form T664 (footnote 1), it is one of the so-called "permanent" documents according to CRA procedures and policies. This so-called "permanent" document must not be destroyed until 10 years after the taxpayer's death. Consequently, a taxpayer who wishes to obtain a copy of the Form T664 that the taxpayer filed with the CRA should generally be able to obtain it from the CRA. Alternatively, the taxpayer could obtain a printout from the CRA showing, among other things, a summary of the taxpayer's capital gains and losses, losses available for the current year, and the election made in 1994.
Finally, with respect to capital cost allowance that may have been claimed by a taxpayer in prior years, this information could possibly be included in the Proof of Income mentioned above.
CRA Response to Question 8(b)
The CRA cannot definitively confirm that it is possible to obtain all types of information for any previous year. However, with the tools at its disposal, the CRA makes every effort to respond appropriately to specific taxpayer requests based on the availability of the information requested.
In addition to the "My Account for Individuals" option at the above-mentioned Internet address, a taxpayer can obtain Proof of Income by contacting the CRA's automated telephone service at 1-800-267-6999. A taxpayer may also contact a CRA agent at 1-800-959-8281 (English) or 1-800-959-8383 (French) to request information on previous returns, stored documents or Proof of Income. Alternatively, they can obtain such information by putting their request in writing and sending it directly through the tax centres.
Thus, depending on the taxpayer's province of residence, the application should be sent to the locations and addresses listed at the following link:
https://www.canada.ca/en/revenue-agency/corporate/contact-information/tax-services-offices-tax-centres.html
For taxpayers whose province of residence is Quebec, the application should be sent to the following address:
Centre fiscal de Jonquière [Jonquière Tax Services Office]
2251, boulevard René-Lévesque
Jonquière QC G7S 5J2
Dominic-Jean Gagnon
(418) 634-2991
October 7, 2020
2020-085164
Response prepared in collaboration with:
Ms. Tina Dumont
Team Leader
Regional Correspondence Centre - Quebec Region
Jonquière Tax Centre
Call Centre Services Directorate
Assessment, Benefit and Service Branch.
FOOTNOTES
Due to our system requirements, footnotes contained in the original document are reproduced below:
1 CANADA REVENUE AGENCY, Form T664, "Election to Report a Capital Gain on Property Owned at the End of February 22, 1994”.