Best Practices for Tax Preparation

This article outlines the best Tax Preparation practices related to the following topics:

Understand the Tax Preparation Process
Completing Tax Forms & Capturing Optimize Inputs
Properly Submitting Tax Preparation Requests
Delivering Completed Tax Returns
Important General Items & Timelines
Additional Resources

Topic	Best Practice
Understand the Tax Preparation Process	Conduct a thorough review of the Tax Preparation Forms, Tax Preparation Pipeline, Knowledge Base FAQs, and associated timelines to ensure accurate completion of Tax Returns and effectively manage client expectations.
Completing Tax Forms & Capturing Optimize Inputs	Hold a comprehensive meeting with clients to complete the relevant Tax Preparation Forms and collect all required slips and receipts. Follow up with a review to confirm the completeness and accuracy of the forms, ensuring all data is correctly captured and transferred.
Properly Submitting Tax Preparation Requests	Adhere to the recommended five-step process to submit Tax Preparation forms efficiently and in line with established best practices.
Staying on Top of Outstanding Tax Preparation Requests	Proactively monitor outstanding Tax Returns through the Tax Preparation pipeline, and respond promptly to all tax-related emails to address any pending requests in a timely manner.
Delivering Completed Tax Returns	Carefully review all relevant figures and fields within each completed Tax Return alongside the client prior to submission to the CRA, ensuring accuracy and client confidence.
Important General Items & Timelines	Be familiar with all essential guidelines and timelines to ensure compliance and the smooth delivery of the Tax Preparation service.

Understand the Tax Preparation Process

Review the pipeline stages below to best understand what action is required by you and your team when submitting tax returns

Pipeline Stage	Action Step	What Happens?	Next Step
Preparation	Initial Review	A ticket is created once the Tax Preparation request is submitted. The tax team performs a high-level assessment to confirm if there is enough data to proceed or if any critical information is missing.	If everything is in order, the ticket moves to “Preparing Return.” If details are missing, it is tagged as “With Client” or “With Optimize Rep” and moves to “Missing Information.”
	Preparing Return	The Tax Team drafts the return using the provided documentation, performs calculations, applies deductions, and ensures compliance. Small edits may occur during this process.	If the return is ready, it proceeds to Stage 2: Review & Delivery. If significant details are missing, it moves to “Missing Information.”
	Missing Information	Missing or unclear information is identified, and the responsible party is notified. The process is paused until the missing details are provided.	Once information is received, the ticket moves to Stage 2: “Amendment Required.”
	Final Review	The Tax Team performs a final check of the completed return to ensure accuracy and completeness before getting sent for checks by the assigned Wealth Planner.	Once the information is reviewed, the ticket moves to Stage 2: "Ready to Review" for Wealth Planner review of the filing.
Review & Delivery	Amendment Required	The Tax Team incorporates major edits or missing data provided by the Wealth Planner. The return is updated and reviewed for completeness.	Once amendments are finalized, the ticket moves to “Ready to Review.”
	Ready to Review	The Wealth Planner or Portfolio Manager reviews the updated return for accuracy and completeness before client delivery.	If revisions are needed, it moves back to “Amendment Required.” If ready, it proceeds to “Pending Client Approval.”
	Pending Client Approval	The client reviews the return, can request changes, or approve it for filing. This step ensures client buy-in before submission.	If the client requests changes, it moves back to “Amendment Required.” If approved, it moves to “Ready to File.”
	Ready to File	The return is fully approved by both internal teams and the client. It is ready for eFiling.	Once filed, it moves to : Completed.
Completed	Completed	The return has been successfully filed. Final documents are saved to the client’s record, and no further action is required.	The ticket is closed.

Completing Tax Forms & Capturing Optimize Inputs

To ensure a thorough and accurate tax filing process, follow these best practices when meeting with clients:

Initial Tax Preparation Meeting

Host a detailed meeting with each client to complete all applicable Tax Preparation Forms.
Collect all necessary slips, receipts, and supporting documents.
The meeting should be structured and consistent, lasting a minimum of 1 hour.
Walk the client through each preparation form relevant to their tax situation to ensure full understanding and completeness.

Review & Quality Check

After the initial meeting, conduct a comprehensive review of all completed forms.
Confirm that all information has been accurately captured and properly transferred to the necessary platforms or systems.

Best Practice Reminder

Always meet with clients before submitting a Tax Preparation request.
This meeting is essential to discuss the client’s specific circumstances and finalize all applicable forms.

Follow-Up Meeting

Once the tax return is completed and Ready to be Filed, schedule a follow-up session with the client.
Use this time to verify the accuracy of the return and ensure that all details are correct before submission.

Ensuring Optimize Tax Inputs and Supporting Documents Are Complete

It is imperative that prior to submitting any Tax Preparation Requests you ensure that all of the Optimize related tax inputs have been correctly added to each individual’s Prep form and that the slips have been provided in their sub-folder. This includes the following:

Optimize RRSP Contributions Slips for contributions made to our custodian
Tax Slips for Non-Registered Accounts held at our custodian
Management Fees (Carrying Charges) for Non-Registered Accounts held at our custodian
Optimize Fund Tax Slips

Please Note: RRSP Slips, Non-Registered Tax Slips, and the Investment Income Summary (Management Fee Report) are available for download through MyPortfolio+. Clients will receive their Optimize Fund Tax Slips by mail, and these will also be electronically submitted to the CRA. Ensure that clients provide their Optimize Fund Tax Slips as part of all tax submission requests.

To access these:

Log into MyPortfolio+.
Navigate to Compass → Client Reporting.
Locate the client profile, click Documents, and select Tax Slips.
Merge all slips into one comprehensive PDF before submission.

Properly Submitting Tax Preparation Requests

Step 1: Only Submit Requests When All Tax Slips Have Been Collected

Tax Preparation requests must only be submitted once all of the client’s expected tax slips have been received.

Most slips are issued by the end of February, but additional slips (e.g., T3's) or amendments (e.g., revised T4's) often arrive through March.

Include only:

T-slips
RRSP contribution slips

Do not include:

Medical expense receipts
Donation receipts
(These amounts will be captured via the Personal Information Prep Form; however, clients should retain original receipts for potential CRA review.)

Tip: Once a Tax Preparation ticket is submitted, additional slips cannot be added to the ticket.

Step 2: Download and Include All Tax Slips in Each Taxpayer’s Subfolder

Organize and include tax slips in clearly labeled subfolders for each taxpayer:

a) From our Custodian:

Optimize RRSP Contribution Slips (custodian contributions only)
Non-Registered Account Tax Slips (held at our custodian)
Management Fees (Carrying Charges) for Non-Registered Accounts
Optimize Fund Tax Slips

b) From outside our Custodian:

T4's
T5008's
Slips from investments held outside of our custodian

Please Note: While Optimize pulls CRA Connect slips, ensure you always include original client-provided slips in your submission package.

Step 3: Report Medical Expenses, Donations, and Carrying Charges on the Personal Information Prep Form

Each taxpayer must report their individual:

Medical Expenses
Donations
Carrying Charges

Avoid consolidating amounts across multiple taxpayers to prevent duplication.
For joint non-registered accounts outside of Optimize, instruct clients to allocate 50% of management fees to each of their Personal Information Prep Forms.

Tip: Use the CRA’s Medical Expense Search Tool to verify eligible medical expenses before inputting totals.

Step 4: Review All Tax Prep Forms and Ensure One Prep Form per Taxpayer

Each taxpayer must have a completed:

Personal Information Prep Form

Only complete additional Tax Prep Forms and the Appendix if applicable to the client’s situation. Leave sections blank if not relevant.

Step 5: Submit as a Household Package with Organized Zip Folder

Submit requests on a household basis, using the Primary Contact’s email.
Create a zipped folder containing all prep forms and tax slips for each household member.
Inside the zipped folder, use individual subfolders for each taxpayer (e.g., “John Doe - Tax Forms”, “Jane Doe - Tax Forms”).

Please Note: Follow the standard naming convention as outlined in the Optimize Portal guidelines when submitting your zipped folder.

Delivering Completed Tax Returns

It is not uncommon for clients to receive amended tax slips or additional information after a Tax Preparation request has already been submitted. When this occurs, it is essential to follow the proper process to ensure timely and accurate adjustments to the client’s tax return.

To address this, a ‘Late or Amended Slip’ request must be submitted through the Optimize Portal. This separate request allows the tax team to properly review and process the additional information without disrupting the original submission.

When submitting the request, include a clear description specifying the nature of the additional information, such as:

Amended T4 or T3 slips
Late-issued tax slips (e.g., T5s, RRSP slips)
Any other supporting documents relevant to the tax return

All supporting documentation should be compiled into a zipped folder, which should include:

The late or amended slip(s)
A copy of the original submission’s zipped folder (if available)
Any necessary updates to the Personal Information Prep Form or related documents

The same subfolder structure used in the original Tax Preparation submission must be maintained, ensuring each taxpayer has a clearly labeled subfolder within the zipped folder.

Clients must be promptly informed about the late slip or additional information, along with a clear explanation that:

An amended return will be prepared
There may be additional processing time and, if applicable, fees related to the adjustment or re-filing

To minimize delays and avoid potential CRA penalties, it is crucial to submit any late or amended slips immediately after they are received. If a tax return has already been filed, the late or amended slip may require an adjustment request to be submitted directly to the CRA.

It is recommended to monitor the status of the late slip request via the Optimize Portal and follow up with the tax team or client, as needed, to confirm that the re-filing has been completed.

Tip: To reduce the occurrence of late slips, encourage clients to delay initial Tax Preparation submissions until mid-to-late March, when most slips and amendments are likely to have been received.

Important General Items & Timelines

Item	Details
Prep Form Submission Deadline	Recommended final date is April 1st.
Final Day to Approve Tax Returns for Filing	April 26th, via the email provided to your team.
Amendments After Filing	Actioned only after May 1st.
Scope of Services	Only Canadian T1 tax returns (excluding Quebec). No Corporate, Trust, Estate, or HST returns.
T1135 Penalty Risk	Taxpayers with foreign property over $100,000 and late filings may face a CRA penalty up to $2,500, even with a refund.
Spouse Return Best Practice	Complete spouse returns together to optimize deductions and avoid duplication (e.g., climate action incentive).
Spouse’s Net Income	Must be reported on the taxpayer’s Prep Form if we are not completing the spouse's return.
First-Time Client Delay	CRA authorization delays possible; tax team starts work only after CRA access is granted.
Pension Income	Complete schedule T1032 to determine optimal pension income splitting.
CRA Record Review	Check for updated mailing address and marital status.
Home Office Expenses	Capture full annual expenses; prorated based on home office square footage
Home Office Deduction Method	Cannot claim both detailed (T2200 required) and simplified methods. Leave simplified section blank if using detailed method.
HBP/LLP Repayment	Minimum repayment applied from RRSP contributions; if none, added to taxpayer’s income.
Refund vs. Balance Owing	CRA requires separate payments; spouses cannot offset amounts directly.
CRA Profile Review	Verify missing data such as installments paid; slips may be incomplete.
Elections Canada Consent	Default is "Yes" unless indicated otherwise.
Record Keeping	Taxpayers should retain receipts and documentation for 6 years.
Spreadsheets in Submissions	Only values on Prep Forms are included; spreadsheets will not be captured.
Disability Tax Credit	Must have a valid certificate on file; re-application may be needed after expiry.
Installment Requirements	Required if net tax owing > $3,000 this year and one of the two prior years; CRA will issue notice.
GST/HST Registration	Required for self-employed taxpayers if criteria met (link provided for criteria).
CRA Payment Methods	Taxpayers with a balance owing can remit payment via methods outlined (link provided).
Handling Amendments	Additional slips or changes submitted after return completion. Ticket will move to "Amendment Required" stage.
Amendment Fee	$75 per amendment if return is eFiled; deducted from the relationship manager’s payroll.

Additional Resources

In addition to this guide, over the last couple months shared helpful information on how to navigate this upcoming Tax season through our Tax MasterClass: Weekly videos are shared on Youtube, providing you with all the essential information you need to stay informed about your taxes.

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