Tips To Keep the CRA Collections Group Happy!

The following are tips to keep the CRA’s collections department happy.

This list in not fully inclusive of everything that you can do because you cannot send them gifts, they have to reject or toss them, and if you do their work for them – they might like that for a bit – until there are no more accounts, and then they will have no more work to do, and then no job.

 

So here are a few tips to keep CRA happy…

  1. Communicate, communicate, communicate.  If they have to contact you, they’re already angry.
  2. Don’t be a jerk on the phone to them.  Everything you say goes into a permanent diary and that diary is summarized semi-annually.  You don’t want anyone who accesses your account to think you’re a jerk
  3. Don’t accuse them of being out to get you…  They likely have 400-500 accounts and their goal is to collect some, write some off and let the others pay or go bankrupt.  Just show them some progress on any of those fronts and you’ll be in much better standing.
  4. Ask for the best and lowest settlement offer.  The CRA does NOT do that unless it is through insolvency or a formal proposal in bankruptcy.  The IRS settles debts, but this is not the IRS… The CRA is WAY better!
  5. If you enter into a payment arrangement, ensure there are sufficient funds in the account to pay the cheques. If a cheque is returned NSF (not sufficient funds), then the CRA collections officer will take immediate collection actions and getting those Requirements to Pay removed can be next to impossible.
  6. Keep current!!!  Whether during the period of a payment arrangement, or just through discussions with the CRA make sure you are up-to-date on all filings and payments (including GST/HST, income tax, payroll taxes, etc).   If you fail to remain current, the CRA can – and likely will – end the payment arrangement and pressure you for more.
  7. Understand that the CRA is not your bank, and treat them that way.  At a bank, you are earning credit, but at the CRA, in collections, you are paying 10% interest compounding daily… It’s not in your best interest to take your time re-paying them.
  8. If you have nothing to hide (and even if you do have something to hide), be honest with the CRA collections officer. Things you say may cause the CRA collections officer to become concerned.
  9. Provide the information that is requested by the CRA collections officer. If the CRA collections officer trusts you, he/she will be more likely to exercise discretion before pressing confirm on that Requirement To Pay.

Changes to the CRA’s RC59 Business Consent Form (For Online Access) Coming in May 2017

The Canada Revenue Agency (CRA) has announced on their website that there are changes coming to the RC59 Business Consent form.  This form is completed by a taxpayer who has business accounts or by businesses who wish to have a representative contact the CRA on their behalf.

Without having this form signed and dated, the CRA will not speak to the representative.

These changes are expected to be law in May of 2017.

These laws apply to representatives who use the RC59, Business Consent, to get online access to their business clients’ information in Represent a Client.

  1. After May 15, to request online access to tax information for a business, you will need to complete the authorization request in Represent a Client. Form RC59 will no longer be used to authorize online access.

    To complete an authorization request:

    1. Log into Represent a Client.
    2. From the Welcome page, select “Review and update.”
    3. Select “Authorization request” at the bottom of the “Manage clients” tab and follow the instructions.
    4. Print the signature page for your client to sign.

    Scan and send the signed copy of the signature page to the CRA using Submit documents.

  2. When you use Represent a Client, you’ll have access to your business clients’ information in five days or less instead of the 15 days it takes today with form RC59.
    You can also see which business clients have authorized you and if the authorizations expire by selecting “Businesses that have authorized this business (or RepID)” under the “Manage clients” tab.
  3. What if I don’t use Represent a Client?
    If you still prefer your current process, you can still use form RC59 to request access to your business clients’ information by telephone or mail.