Entering an amount forfeited for a T4PS (profit sharing), was put onto line 229 by turbo tax. The CRA sent me a notice wanting a T2200 form sent to them. What do I do?

[TurboTax-Duncan · Accepted solution]

Hi, thank you for using Intuit TurboTax AnswerXchange

The box 36 of the T4PS must be reported on line 229 as mentioned on the back of the T4PS slip, see attached slip.PNG. So if the amount was in box 36 of the T4PS it has been reported correctly.

The Canada Revenue Agency (CRA) must be under the mistaken impression you claimed employment expenses on T777 which requires a T2200 which is not the case here.

Unfortunately you must contact CRA to let them know the amount claimed was from a T4PS and not from a T777.  You should not need to submit the T2200, just explain the entry on line 229 to CRA so they can close their review.

Hope this helps

[kirk3]

Thank you for the response. I called the CRA they asked for a copy for the T4PS, which is odd because there was no indication of this in the review letter that they had sent me.

[TurboTax-Duncan]

Yes. And, they should have a copy of the T4PS. These issues arise since only the line 229 and the amount entered on that line are submitted to CRA as per their specifications. It can therefore take some back and forth with CRA to resolve their review when a file is selected. Hope you get it resolved quickly!

[TurboTax-Duncan]

I will just add if CRA asks for documentation, it should be supplied. The CRA cannot close a review without required documentation or re-assessing a return if documentation is not supplied.

[TurboTax-Duncan]

I will just add if CRA asks for documentation, it should be supplied. The CRA cannot close a review without required documentation or re-assessing a return if documentation is not supplied.

[kirk3]

Thank you!