Alan Baggett
2015-08-25 11:07:03 UTC
Tax agency says she's dead and a horror story ensues : CRA SOTW
JESSICA FLOWER
Published July 29, 2015 - 6:51pm
Last Updated July 29, 2015 - 7:
First they tried to kill her and then they tried to tax her to death.
Or something to that effect.
Despite what the Canada Revenue Agency thinks, Anna Zahorski of Halifax is still very much alive.
On Oct. 7, 2014, the Zahorskis received a T4A, a statement of Old Age Security, from the Canada Revenue Agency (CRA) addressed to "The Estate of Anna Zahorski." The letter stated, much to Anna and her husband Victor's surprise, that since she had passed away her OAS benefits would stop and were to total $4,985.37 for 2014.
Perplexed, Victor took the letter to Service Canada on Quinpool Road and, after presenting Anna to show that she was indeed alive, was told to disregard that T4A, he explained in an interview. No apology was made.
A new one was later issued for $6,676.59, the correct amount, and it seemed as though the problem was fixed. Victor said the couple went away for their winter vacation, thinking the mix-up was behind them.
When it came time for the Zahorskis to file their taxes for 2014, Service Canada totalled and submitted two T4As -- both the "Estate of" and the correct T4A -- to the CRA, Victor said. That made it seem as though Anna had received $11,662.96 in OAS benefits, instead of the actual $6,676.59.
In a reassessment, the CRA levied more tax, incorrectly reducing her return by over $2,000 from what they had expected, he said.
The CRA had earlier -- still acting as though Anna was dead -- stopped pre-authorized tax instalment payments.
Victor, acting on behalf of Anna, has been trying for the past couple of months to rectify the situation but has been getting "the rigmarole" from the various agencies.
"Mistakes happen! I've made many mistakes in my life. But I expected them to take action and issue an apology, but nothing!" said Victor.
Since the beginning of July, Victor has been going into Service Canada in person, calling the CRA on the phone, filing both a formal complaint online to CRA and sending a letter to the tax centre in Newfoundland. He has received no acknowledgement of either complaint, he said.
The Canada Revenue Agency said Wednesday it updates deceased information to an individual's account when confirmation of the death has been received from other government departments, lawyers, executors, representatives, beneficiaries, or family members.
"Despite safeguards to ensure accuracy of our files, occasionally information we receive is incorrect or misinterpreted. Whenever there is any indication the information we have is incorrect, immediate steps are taken to correct our records. Those steps include ensuring that affected individuals receive all the benefits and credits to which they are entitled," the agency said in an email responding to questions about the Zahorski file.
"The confidentiality provisions of the Income Tax Act prevent the CRA from commenting on specific cases."
The Zahorskis have been married for 67 years and have lived in Halifax for over 40 years. Victor worked at an engineering firm and Anna in the library at Saint Mary's University.
Despite neither of them looking their age, Anna and Victor are nearing 90, and life is catching up. In 2014, Anna had close to $14,000 in medical expenses, they said.
"We'd like this issue resolved as quickly as possible or as quickly as the system will allow," said Victor, who had originally contacted The Chronicle Herald's financial columnist Roger Taylor for advice on how to proceed. "We only went to the media because we were frustrated and disappointed. We understand everyone makes mistakes but there should be a more human response."
They received a duplicate of the correct T4A last week but are confused as to what it means: "Why would I be blessed with a duplicate?" Victor said laughing.
The two are able to laugh at Anna's premature death, but are eager for a solution.
Just before they sat down with The Chronicle Herald, an official had called to say that he was sending off the new duplicate to the CRA.
"But, who knows?" said Victor.
The two are looking for an apology from the CRA and a correction to their tax statement to properly reflect the old-age benefit received.
----------------------------------------------------------
Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible
JESSICA FLOWER
Published July 29, 2015 - 6:51pm
Last Updated July 29, 2015 - 7:
First they tried to kill her and then they tried to tax her to death.
Or something to that effect.
Despite what the Canada Revenue Agency thinks, Anna Zahorski of Halifax is still very much alive.
On Oct. 7, 2014, the Zahorskis received a T4A, a statement of Old Age Security, from the Canada Revenue Agency (CRA) addressed to "The Estate of Anna Zahorski." The letter stated, much to Anna and her husband Victor's surprise, that since she had passed away her OAS benefits would stop and were to total $4,985.37 for 2014.
Perplexed, Victor took the letter to Service Canada on Quinpool Road and, after presenting Anna to show that she was indeed alive, was told to disregard that T4A, he explained in an interview. No apology was made.
A new one was later issued for $6,676.59, the correct amount, and it seemed as though the problem was fixed. Victor said the couple went away for their winter vacation, thinking the mix-up was behind them.
When it came time for the Zahorskis to file their taxes for 2014, Service Canada totalled and submitted two T4As -- both the "Estate of" and the correct T4A -- to the CRA, Victor said. That made it seem as though Anna had received $11,662.96 in OAS benefits, instead of the actual $6,676.59.
In a reassessment, the CRA levied more tax, incorrectly reducing her return by over $2,000 from what they had expected, he said.
The CRA had earlier -- still acting as though Anna was dead -- stopped pre-authorized tax instalment payments.
Victor, acting on behalf of Anna, has been trying for the past couple of months to rectify the situation but has been getting "the rigmarole" from the various agencies.
"Mistakes happen! I've made many mistakes in my life. But I expected them to take action and issue an apology, but nothing!" said Victor.
Since the beginning of July, Victor has been going into Service Canada in person, calling the CRA on the phone, filing both a formal complaint online to CRA and sending a letter to the tax centre in Newfoundland. He has received no acknowledgement of either complaint, he said.
The Canada Revenue Agency said Wednesday it updates deceased information to an individual's account when confirmation of the death has been received from other government departments, lawyers, executors, representatives, beneficiaries, or family members.
"Despite safeguards to ensure accuracy of our files, occasionally information we receive is incorrect or misinterpreted. Whenever there is any indication the information we have is incorrect, immediate steps are taken to correct our records. Those steps include ensuring that affected individuals receive all the benefits and credits to which they are entitled," the agency said in an email responding to questions about the Zahorski file.
"The confidentiality provisions of the Income Tax Act prevent the CRA from commenting on specific cases."
The Zahorskis have been married for 67 years and have lived in Halifax for over 40 years. Victor worked at an engineering firm and Anna in the library at Saint Mary's University.
Despite neither of them looking their age, Anna and Victor are nearing 90, and life is catching up. In 2014, Anna had close to $14,000 in medical expenses, they said.
"We'd like this issue resolved as quickly as possible or as quickly as the system will allow," said Victor, who had originally contacted The Chronicle Herald's financial columnist Roger Taylor for advice on how to proceed. "We only went to the media because we were frustrated and disappointed. We understand everyone makes mistakes but there should be a more human response."
They received a duplicate of the correct T4A last week but are confused as to what it means: "Why would I be blessed with a duplicate?" Victor said laughing.
The two are able to laugh at Anna's premature death, but are eager for a solution.
Just before they sat down with The Chronicle Herald, an official had called to say that he was sending off the new duplicate to the CRA.
"But, who knows?" said Victor.
The two are looking for an apology from the CRA and a correction to their tax statement to properly reflect the old-age benefit received.
----------------------------------------------------------
Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible