Introduction to Contacting the CRA
When someone passes away, it’s essential to contact the government as soon as possible to take care of various tasks. This includes canceling a provincial health card, driver’s license, and applying for Canada Pension Plan (CPP) death and survivor benefits.
Contacting the CRA
From a tax perspective, you should contact the CRA by phone or mail. When calling CRA Individual Tax Inquiries at 1-800-959-8281, make sure you have the following information on hand:
- Date of death
- Social Security Number (SIN)
- Postal address
- Last tax return or tax assessment
You should report the date of death and stop any ongoing benefits that may need to be repaid.
Notifying Other Government Agencies
There are several other government agencies that you should also notify. This ensures that all necessary steps are taken care of, and benefits are received.
Executors and Next of Kin
To officially represent someone who died to the CRA, you can do so as a legal representative or appoint an authorized representative. A legal representative is usually the executor named in the deceased’s will. In Quebec, this representative is called a liquidator.
Registering for Represent a Client
If you want to access the deceased’s CRA account online, you will need to register for the CRA’s Represent a Client service. You can do this with your CRA user ID and password or select a login partner through your online banking using the Interac login service. On the welcome page, select Add Account → Representative Account → Register with Represent a Client → Register.
Submitting Documents
Once registered, you can submit documents using the Submit Documents service in Represent a Client. You must provide a copy of the death certificate and a copy of the will, probate, or letters of administration naming you as executor. If the deceased did not have a will, you can complete and submit Form RC552 Registration as Representative of a Deceased Person.
Appointing an Authorized Representative
If you prefer the old-fashioned way, you can also mail or fax these documents to the CRA without registering for Represent a Client. You should send them to the tax office that looked after the deceased using their postal address. Once you are authorized as a legal representative, you can appoint an authorized representative, such as an accountant or lawyer.
Filing Tax Returns
You must file a final tax return by the date of death, reporting income for that year. There is also a deemed disposition of assets upon death that can trigger a tax on registered accounts such as Registered Retirement Savings Plans (RRSPs) or Registered Retirement Income Funds (RRIFs). Capital assets such as unregistered investments, holiday homes, and rental properties may also be subject to capital gains tax.
Tax Implications
Assets in other countries are also relevant, as Canadian residents are taxed on their worldwide income. Certain choices may be available to defer taxes upon death, most notably a spousal rollover, which allows assets to be transferred to the surviving spouse or domestic partner.
Conclusion
Contacting the CRA and taking care of tax-related tasks after someone passes away can be a complex process. However, by following the steps outlined above and seeking professional help when needed, you can ensure that everything is taken care of efficiently and effectively. Remember to stay organized, keep track of deadlines, and don’t hesitate to reach out to the CRA or other government agencies if you have any questions or concerns.