Federal US Deadline (Sort-of) Extended

The IRS, on March 18, 2020, issued guidance providing it would waive penalties and interest on tax payments for 90 days, though not postponing the due date for filing a 2019 tax return.

On March 20, 2020, US Treasury Secretary Steven Mnuchin announced via Twitter that the IRS and Treasury have delayed the due date for filing 2019 tax returns to July 15, 2020. (Please note that Twitter is not an official publication vehicle of the US Government, though it certainly appears to be used as such by its Commander in Chief.)

US Persons who are not present in the US have an automatic extension of 60 days to file the US return. This would mean that US Persons in Canada on April 15, 2020 would have an automatic extension to file on or before June 15, 2020 and an extension to pay on or before July 15, 2020.

As the situation is still fluid, please stay tuned in case the situation changes.

Our COVID-19 Procedures

In light of the increasing restrictions for the COVID-19 quarantine, these are our procedures for eliminating, reducing, and tracking potential infections.

Meetings

All in-person meetings are now cancelled.

Individuals who previously were scheduled for an in-person meeting are encouraged to make use of the video-conferencing service. This allows you to experience the meeting, similar to being present, but without the risk.

Individuals who want to drop off papers are encouraged to use one of the following alternative methods:

  1. Electronic submission through my client portal, using your computer or using your phone/tablet app to photograph and upload,
  2. Delivery by the Post (Registered or XpressPost Service recommended; Notify me of the tracking number when mailed,)
  3. Drop at door (By Appointment; Ring doorbell; Leave at door and step back; We pick up from door before you leave.)

Individuals who need to sign papers are encouraged to use one of the following alternative methods:

  • Electronic signatures, and
  • Mailing papers for you to sign and mail back.

What happens if you come to the door…

All persons presenting at the door are logged to identify potential cross-contamination should it later be required.

What happens to paper received…

We are unable to process any thermal papers safely (credit card slips, debit card slips, or the like.) If you have these papers, please leave at home and ask us for direction on how to process safely. (Note that thermal paper will fade rapidly if you apply a highlighter. The sterilization process has a similar effect.)

All paper will be processed through a UV Sterilizer for one hour. The reason is to attempt to prevent cross-contamination of papers. This is logged.

Paper is then scanned. This is logged. Original client papers are then sealed to prevent further cross-contamination.

The logging is to identify potential cross-contamination points should it later be required.

I want to know whose paper was scanned before mine…

That is confidential. It will be released to the appropriate authority in the requirement to stem a pernicious infection.

If you are infected, please advise your attending medical practitioner (or have your family advise them,) that your papers were processed at my office. Your attending medical practitioner will inform the appropriate authority who can request the release of the information. We will work with the appropriate authority to ensure that all potential people at risk are identified and their safety is assured.

Federal Deadlines Extended

The Federal Government has announced the following extensions for Personal Tax Returns:

  • Deadline to File: Extended to June 1, 2020
  • Deadline to Pay: Extended to August 31, 2020
  • Deadline for Personal Tax Instalments: Extended to August 31, 2020.

The Federal Government has announced that taxpayers may sign electronically transmitted tax returns using an electronic signature. This is a temporary measure. This is not extended to paper filed tax returns.

Electronic filled tax returns are encouraged as paper filed returns are likely to be stockpiled during the quarantine.

The Federal Government has extended the filing deadline for Trusts with a taxation year ending Dec 31, 2019 to May 1, 2020 from March 30, 2020.

Quebec Deadlines Extended

Revenu Quebec has announced the following extensions for Personal Tax Returns:

  • Deadline to File: Extended to June 1, 2020
  • Deadline to Pay: Extended to July 31, 2020
  • Deadline for Personal Instalment Payments: Extended to July 31, 2020

Revenu Quebec has announced that electronic signatures are now permitted on some forms that clients must sign. The two forms are the TP-1000.TE and the C0-1000.TE

Revenu Quebec has announced collection of income tax and instalment payments for businesses are suspended until July 31, 2020. Payment dates and terms will be announced later, though “businesses will be given a reasonable amount of time to pay amounts owing.”

Phoenix T4 Slip Error

I just noticed this error on a government T4 slip. This is for T4 slips for employees posted overseas. The primary worker who may be affected are members of the Diplomatic Corp. Individuals working in private industry such as the Oil Sector may also be affected.

Background

The definition for province codes for T4 slips may be found by checking this following web page. If you check the instructions for Box 10 – Province of Employment, the government has standardized all the codes.

These codes reflect the same two character provincial abbreviations used by Canada. The only two exceptions are:

  • US – for employment in the US, and
  • ZZ – for other, meaning that the employee worked in a country other than Canada or the United States, or if the employee worked in Canada beyond the limits of a province or territory (for example, on an offshore oil rig).

Problem

Phoenix has used the code EX instead of the authorized codes.

All government workers who work outside of Canada (principally the diplomatic corp,) will probably have their T4 slips registered at the Canada Revenue Agency with this wrong code in box 10. As a result, any person who downloads these tax slips will likely have a problem with importing the tax slip into their tax return, if you use tax software.