The Authorization That Stayed on File

Imagine you've agreed to have a tax professional review your previous tax years.

You sign the agreement and provide the required authorization.

Then life moves on.

Months or even years later, you log into your CRA account and notice that the company is still listed as an authorized representative.

Your first thought might be: "Why are they still there?"

The answer comes down to what the authorization was originally intended to do.

Authorization isn't the same as ownership

When you authorize a tax professional to act on your behalf, you're giving that representative permission to perform certain activities with CRA within the scope of the authorization.

The representative doesn't become the owner of your CRA account. They are acting as your authorized representative.

For Canada Tax Reviews’ clients, the authorization is part of the process that allows the company to review relevant tax information and work on applications on the client's behalf.

Why would the authorization remain?

This is one of those things that can seem strange if you don't understand how the process works.

A client may think:

"The review is over, so shouldn't the authorization disappear?"

Not necessarily. If the authorization was established for ongoing service, it may remain on file until the client specifically asks for the service to stop or the authorization is otherwise changed or revoked.

The important point is that authorization and completion are two different things.

A tax review can involve historical tax years, applications, and CRA processing timelines.

The work doesn't necessarily end the moment paperwork is submitted.

Imagine the timeline

Let's say a review begins in January.

A potential opportunity is identified in February.

The necessary paperwork is prepared in March.

An application is submitted.

Now the client is waiting.

The client may look at their CRA account during this period and see the representative still listed. That's not necessarily an indication that something new is happening.

It can simply mean the authorization remains in place while the file is being handled

What if the client changes their mind?

Clients can communicate that they no longer want the service. And timing matters.

If someone reaches out while the work is still in its early stages, there may be an opportunity to stop the process before substantial work has been completed. 

But consider a different situation: The review has already been completed.

The application has already been submitted, and the company has spent significant time preparing and processing the file.

At that point, revoking authorization doesn't erase the work that has already happened.

That's why communication is so important. If you're unsure about something, talk to the company before simply revoking authorization.

It gives both sides an opportunity to understand where the file actually stands

Authorization doesn't mean CRA approves everything

Another important distinction is that an authorized representative doesn't control CRA.

Canada Tax Reviews can communicate with CRA within the scope of the client's authorization.

It cannot decide how quickly CRA processes an application, nor can it prevent CRA from applying an eligible refund toward an outstanding government debt.

The takeaway

Seeing a tax professional listed as an authorized representative can look confusing when you don't remember why they're there.

You can directly ask the authorized representative, "What stage is my file at, what did I authorize, and what work has already been completed?"

And that leads to another question taxpayers sometimes have when they look back at an old agreement: "Wait... I don't remember signing that."

That's where digital agreements enter the story.

Continue reading: Digital Signature: Understanding Digital Tax Agreements