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NETFILE system opens today
The Canada Revenue Agency officially opens its electronic filing system at 8:30 am EST on Monday, February 13. If you are looking forward to filing your return, here is what you need to know about using NETFILE.
Even though the 2011 tax forms have been available since early January, today is the day tax season really gets underway in Canada. The Canada Revenue Agency’s electronic filing system goes online today and will begin accepting 2011 tax returns. People with their tax paperwork ready can get their filing out of the way starting today.
If you are filing your own return, NETFILE does have a few rules before you can file. First, you should receive a code on the front page of the T1 package sent to you by the CRA. If a third party prepared your return or you e-filed last year, your T1 package will only be the one page. If you do not have a code or you can’t find it, you can contact the CRA.
First-time filers cannot use NETFILE. The same applies to people who are new to Canada in 2011. You need to have a history with the CRA to be able to file electronically. If your address is outside of Canada, you cannot use NETFILE, and estate returns cannot be sent in using NETFILE either. Also, NETFILE will only accept current-year tax returns, so if you missed filing last year you cannot file your 2010 and 2011 returns at the same time. You will have to mail your 2010 tax return to the CRA for processing.
There are other restrictions depending on the complexity of your return, so make sure you qualify before hitting Send. And remember, the NETFILE system will close at the end of September, so if you really want to procrastinate on your filing you may want to consider that deadline.
For taxpayers using the system, make sure you keep a record of your confirmation number once your return is accepted. This will be handy in case there are any questions about your return. You should also keep your documents handy. You may not submit them with your return, but the CRA can ask for back-up once they begin reviewing returns over the summer. If you do not have the right slip or receipt, your claim will be denied.
And if you wait until April 30 to file, the system will most likely be busy. The last few days of tax season are usually the busiest for NETFILE and the system can slow down. Though it is human nature to procrastinate, it is better not to leave it until the last minute.
Cleo HamelSenior tax pro and national spokesperson
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