Tax Problems Update - 2

Here is the latest update from the Canada Revenue Agency regarding their problems with their computer database and tax filings:

Update: March 9, 2007

Commissioner of the Canada Revenue Agency (CRA) Michel Dorais reported today that the CRA is making further progress in its efforts to resolve the computer database problem that prompted the Agency to suspend most online services for individual taxpayers earlier this week.

"Our solution is working and in the past 24 hours we have successfully restored several databases," said CRA Commissioner Michel Dorais. "CRA employees will be working through the weekend to continue to restore the rest, and we expect to make good progress."

"Once we complete this phase of our recovery plan," said Mr. Dorais, "we will work out the schedule to bring online services for individual taxpayers back online."

The Agency confirms that all online services for business are still functioning. The CRA would like to remind businesses that all payments must be made as required on the prescribed dates. Installment payments by individuals are due as usual on March 15.

We are also attaching an article from CTV news on the subject for more background.

Computer glitch taxing Canada Revenue systems

Updated Fri. Mar. 9 2007 10:02 PM ET

CTV.ca News Staff

More than one million tax returns have been filed this year, but they are sitting on hold while Canada Revenue Agency technicians work around the clock on an unexplained computer glitch that was discovered last weekend.

Many agency employees have been sent home while others work around the clock to restore its electronic filing system after an unprecedented shut down.

The Canada Revenue Agency says the department is making progress with the system, but other sources report it could be late into next week before Canadians can even think about filing their taxes.

"We've made some really good progress and in the last 24 hours, we have resolved a number of issues," CRA spokesperson Jacqueline Couture told CTV Newsnet Friday afternoon.

"We're still in the process of restoring and testing the databases."

Meanwhile, Liberal MP Judy Sgro called on Revenue Minister Carol Skelton to return to Ottawa and attend to the problem.

"Millions of Canadians are waiting to file their tax returns and are depending on a timely refund of the money that is owed them by this government," Sgro said in a statement released Friday.

"Meanwhile, as her department is reeling in crisis, the Minister responsible is in Saskatchewan for a photo-op with the Prime Minister."

Skelton joined Prime Minister Stephen Harper as he announced an injection of $1 billion for Canadian farmers.

Skelton told reporters the computers are being slowly brought back online and tested.

"We've been monitoring day by day and hour by hour,'' she said. "Some of our people, I'm getting worried about them, because . . . some people have been working around the clock.''

Harper said the federal government is doing everything it can to fix the problems plaguing Revenue Canada, which occurred at the busiest time of year.

"All I can say is we're obviously ... on the backs of the department to get on with fixing this problem as soon as possible," Harper told reporters.

"This is a major administrative problem. It's going to be a few days until it is fixed but we're confident at this point that it can be fixed in a way that will not disrupt the deadlines for tax-filing," he said.

The prime minister said that he was assured by his top officials that they understood the gravity of the matter and that they were working round-the-clock to resolve the problem.

However, the Liberals are demanding the income tax filing deadline of April 30 be extended to accommodate for the inconvenience to taxpayers.

Revenue Canada has said that Canadians who owe taxes from last year are still responsible for mailing payment on time. For those paying quarterly, the next payment is due on March 15 and there will be no extension.

In addition to being unable to process electronically filed tax returns the Canada Revenue Agency is also unable to process mail-in applications because the information cannot be uploaded to their databases.

"Just as when you send your information online and it's put into the database, when we receive a paper copy that information also has to be inputted into our database," Couture said on Friday.

"They are still accepting the paper copies, it just means that it's at the same place as if you were Netfiling it, it can't be put into our database," she said.

Couture explained that Canadians who filed with Netfile before the system failed should have received a confirmation number, which ensures their information was received.

She also stressed that security protecting the sensitive data was not corrupted during the glitch.

"There is no risk. It really was an internal problem when we did some routine updates and maintenance on the weekend. For some reason, one of the databases sort of threw it off and one of the interconnections wasn't being made."

"It is definitely an internal problem. It's not a virus; there was no piracy or illegal activity done on our files."

For those client who are waiting to file, we make two suggestions:

1. Get your taxes completed. There is no good reason to wait so if you have all of your documentation and are ready for your return to be completed, get the information to us as soon as possible. We will complete your return and have it ready to file just as soon as the CRA systems are up and ready.
2. Sign up for our email updates. On this page, you will note a place where you can sign up for notification of updates to this page. In this way, you will be notified about any information about this problem as soon as we know.

We are continuing to monitor this situation and will keep giving you timely updates. Please check back.