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Business Limit Adjusted on a T2 Notice of Assessment


#1

I received a Notice of Assessment on a recently filed T2 return that has a January 31, 2017 year end. The Assessment worked out as I had calculated, however, I was somewhat disturbed to find the following narrative under the Explanation of changes and other important information;

I don’t know where on the T2 Return I would find this Line 427 to verify what I submitted. Line 425 on the T2 Jacket (Reduced Business Limit) that I submitted with Taxcycle shows an amount of $500,000.00.

Everything looks good on my end, including the business limit, so I don’t know what the CRA received in my T2 transmission, nor can I find line 427 (even with a search). This is the first time I have come across this on filing a T2 return with Taxcycle, but it is also the first 2017 T2 year end I have filed as well.


#2

I had one as well but I had mind at $50,000 for this company. Assessment processed as filed but had the little same sentence saying they has recalculated to $50,000 to match their records


#3

It sounds like it might be a CRA quirk, but if you want to look at exactly what was transmitted, click on the highlighted icon in your history, and see for yourself:


#4

Its almost as if the CRA changed the line number for “Reduced small business limit” from 425 to 427 and didn’t bother tell the software developers.


#5

Had already done that. Not sure what the best software is to view the .cor file so I always use Notepad. It’s a bit of a jumbled mess, but when I search for “427” I don’t get any results. If I search for “425” I see 500,000

Taxcycle does not seem to transmit an amount for line 427… so yes… phantom line 427 could be a CRA quirk.


#6

Good afternoon,

Line 427 will be available in the next T2 release due out soon. The CRA system had its update recently so it could be a quirk. I have sent an email to the CRA informing about these NOAs. If I hear anything I will let you know.

Have a great summer!

Steven


#7

@snoplowguy @james1

The CRA confirmed that this message on the NOA will not be issued once TaxCycle is updated in a week or so with the new line 427 in the T2 jacket. So, nothing to worry about. If you have any questions, please let me know. Have a great day!

Steven