Ombudsperson Final Update - Reaching Out
Background
This examination, Reaching Out, gives voice to what the Ombudsperson heard during outreach with Community Volunteer Income Tax Program (CVITP) partner organizations, volunteers, and the CRA’s CVITP coordinators, to learn more about the program and to understand the success stories and challenges of their experiences. The examination also outlines changes the CRA made after the release of the Ombudsperson’s Observation Paper to the Minister of National Revenue in November 2018 and includes recommendations for further improvements.
Within the CVITP, services offered and training provided to volunteers need to reflect the realities of the diverse sectors throughout Canada. Different areas of the country will have different primary needs from the CVITP. The CRA needs to address those needs, in its actions through the CVITP, in the training provided to CVITP volunteers, and in the support given to partner organizations.
Examination findings
Findings in this examination touch on the following:
Difficulties accessing services through the CVITP due to:
- the limited scope of the program
- life circumstances or geographic location
- barriers in the CRA’s authentication and authorization processes
Availability of resources for the CVITP:
- Availability of volunteers and partner organizations
- Availability of funding for partner organizations
Lack of sufficient support and training related to:
- the registration process
- the CVITP dedicated telephone line
- the push to digital services
- the promotion of the CVITP
- the CRA’s CVITP coordinator role
Update
We made 15 recommendations in this report. The CRA agreed with 14 of them, created an action plan and provided updates on its action plan in 2021 and 2022. Overall, the action plan has addressed our main findings. This is examined below.
Recommendation 1
The Taxpayers’ Ombudsperson recommended that the CRA continue to minimize and, where possible, remove barriers to accessing services through the CVITP, including:
- Increase the number of walk-in and mobile clinics;
- Allow volunteers to meet with and assist individuals in filing their income tax and benefit returns via telephone;
- Expand the services CVITP volunteers can provide online;
- Inform CVITP volunteers of exceptions to the requirement that, if using EFILE, the income tax and benefit return must be transmitted to the Canada Revenue Agency within 48 hours of preparation;
- Update information to make it clear when income tax and benefit returns reporting tax-exempt income may be completed through the CVITP; and provide the required year-round, tailored and ongoing support to and training for CVITP partner organizations and volunteers to enable the filing of these returns;
- Improve training and communication products for CRA agents on the CVITP dedicated telephone line regarding authentication and authorization measures to ensure consistency of application and the appropriate use of judgment specific to the particular circumstances of the caller; and
- Continue to work with partner organizations, CVITP volunteers, and other persons working with low-income and/or vulnerable individuals to simplify the authentication process to request information, while protecting the confidentiality of information.
Our analysis of the CRA’s actions
The CRA indicated in its response that it “is in agreement with the overall recommendation to continue to remove barriers to the use of the CVITP.” In the update to its action plan in 2021, the CRA provided information that demonstrated it had addressed parts a., b., c., d. and e. of recommendation 1 by taking steps to reduce and/or remove barriers to those wanting to access the program. These included:
- Increase of the number of walk-in and mobile clinics
- Expansion of the online services available to volunteers and organizations with the addition of the Auto-Fill My Return (AFR) feature
- Development of new partnerships with professional associations and community organizations, resulting in continued growth of the program
- Amendment of the CVITP training modules to better explain exceptions to the requirement related to EFILE
- Update of the CVITP training for organizations and volunteers to provide resources for income tax and benefit returns reporting tax-exempt income
The CRA’s 2022 update also provided information about the steps it was taking regarding parts f. and g. of the recommendation. The CRA indicated it,
[…] reviews training material for the Dedicated Line on an annual basis. In an effort to continue to simplify the process, the CRA will continue to review training for Dedicated Line agents, and will study authentication measures, as well as the appropriate use of judgment in specific circumstances of the caller where feasible, while also respecting confidentiality measures.
In addition, the CRA presented alternative options it has introduced to authenticate the identity of a taxpayer in order to provide assistance.
Through briefings and information our Office received from the CRA, we are aware that the CRA continues to explore options to improve and simplify the process of its administration of the CVITP grant.
As a result of these actions, we have concluded that the CRA has sufficiently addressed recommendation 1.
Recommendation 2
The Taxpayers’ Ombudsperson recommended that the CRA broaden the scope of the CVITP by providing the necessary information, and year-round tailored and ongoing support to and training for CVITP partner organizations and volunteers, to implement the following changes:
- Further increase the income threshold;
- The preparation of income tax and benefit returns and applications for different types of income, benefits, credits, and deductions; and
- The provision of assistance to individuals for CRA review and verification processes.
Our analysis of the CRA’s actions
The CRA responded that it “agrees with the overall recommendation to provide increased support to clients who access the CVITP.”
For recommendation 2 a., we reviewed the eligibility criteria on the About free tax clinics web page and the income threshold has been increased. The CRA has also included some exceptions to the “modest income and a simple tax situation” criteria. For example, individuals who have a T4A slip, Statement of Pension, Retirement, Annuity, and Other Income that shows self-employed or business in box 048, may be eligible to have their tax return completed through the CVITP if certain conditions are met. Similarly, individuals who receive U.S. Social Security benefits are eligible to have their tax return completed through the CVITP. However, any other type of foreign income (including a foreign pension) would not be considered a simple tax situation.
As for recommendation 2 b., participating organizations can currently choose to host in-person tax clinics, virtual tax clinics or both. Volunteers at virtual clinics may complete taxes by videoconference, by phone, or through a drop-off clinic.
With regard to part 2 c. of the recommendation, in the 2022 update, the CRA indicated that:
[…] the CVITP provides online training resources to volunteers on how to complete a T1 Adjustment request and includes information on how to access the dedicated volunteer phone line for additional assistance. The CVITP will continue to explore opportunities to increase awareness of the review and verification process through volunteer education.
We verified this information and found that the CRA currently provides resources to CVITP volunteers on how to send online adjustment request for tax returns. A dedicated helpline is available for volunteers.
With the CRA’s response and subsequent updates, we have concluded that the CRA has sufficiently addressed recommendation 2.
Recommendation 3
The Taxpayers’ Ombudsperson recommended that the CRA continue to grow and improve the CVITP. In so doing, it is recommended the CRA:
- Measure and assess the effects and impact of changes made to the CVITP;
- Consult existing stakeholders;
- Consult a wide variety of sources and potential stakeholders, including organizations assisting vulnerable populations but who do not currently participate in the CVITP;
- Use all existing research, data and information available to the CRA; and
- Invest in research and development.
It is recommended that when changes are made to the CVITP the CRA provide the necessary information, and year-round, tailored and ongoing support to and training for partner organizations and volunteers to implement the changes.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. Its response demonstrated that it was already addressing the recommendation. For parts a., b. and c. of the recommendation, the CRA indicated the following:
The ultimate goal of the CVITP is to help as many people as possible.
To further this goal, the CRA:
- Conducted annual surveys over the past two years with organizations and volunteers to assess the program effectiveness and impacts of new CRA initiatives, such as Auto-fill my return.
- Recently created the Strategic Partnerships Section in order to consult with, and add to its list of existing stakeholders which includes other government departments and non-government organization in an effort to expand the program’s reach to vulnerable populations. […]
- Developed business intelligence tools to provide information on where to target efforts to increase CVITP coverage in geographical areas where there are gaps in service to segments of the population […].
As for parts d. and e. of the recommendation, the CRA has recently provided information and several briefings to our Office that show that it is conducting significant research and analysis with other government departments to identify key challenges that vulnerable Canadians face in filing their tax returns and potential solutions to address them. These studies strengthen the CRA’s work with vulnerable populations and enable evaluation of outreach and CVITP activity success.
We have concluded that the CRA has sufficiently addressed recommendation 3.
Recommendation 4
The Taxpayers’ Ombudsperson recommended that the CRA proactively communicate all changes to, and affecting, the CVITP in a timely and clear manner, by multiple methods, to partner organizations, volunteers, and potential partner organizations, and provide any necessary training.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. In its response, the CRA pointed out what it was already doing in terms of communicating changes that affect the CVITP:
The CRA leverages a multitude of formats to communicate and promote the CVITP. It communicates changes to the CVITP as well as changes affecting the program through biweekly regional teleconferences, an annual Community Outreach and Support Division conference, Wiki discussion boards, social media (Twitter, LinkedIn, Facebook, YouTube), promo cards, and posters.
The CRA developed a web-based training product and will ensure that all changes affecting CVITP organizations and volunteers are incorporated in a timely manner.
The CRA will continue to leverage its existing networks and processes as well as work with its communications team to identify opportunities to expand its reach.
Although the CRA did not address the question of proactivity in its communication regarding changes affecting the CVITP, we are aware that it regularly takes steps to make information about the program available on its relevant web pages. There might still be some room for improvement, but we have not heard any complaints from organizations regarding how the CRA communicates with them.
We have therefore concluded that the CRA has sufficiently addressed the spirit of recommendation 4.
Recommendation 5
The Taxpayers’ Ombudsperson recommended that the CRA ensure the quality of the best practices and services it provides for the CVITP are consistent throughout Canada while ensuring these best practices and services are reflective of, and meet the needs of, the diverse regional, geographic, socio-economic, workforce, and vulnerable sectors throughout Canada.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. In its response, the CRA identified initiatives already in place. It indicated:
The CRA strives to improve the quality and consistency of service to Canadians nationally. It actively promotes the sharing and implementation of best practices by its program coordinators through internal communication vehicles such as biweekly regional teleconferences, the annual Community Outreach and Support Division conference, and Wiki discussion boards accessible to CVITP staff nationwide.
The CRA’s overhauled training product and improved communication mechanisms such as, increased use of the Wiki system to provide updates from headquarters to the regions and a streamlined functional structure within headquarters, will help to facilitate the timely education of volunteers with regards to changes in tax policy and/or processing that may impact program clients.
It was not clear through this response whether or not these initiatives are reflective of, and meet the needs of, the diverse regional, geographic, socio-economic, workforce, and vulnerable sectors throughout Canada, as we recommended.
That said, our Office has received briefings and information from the CRA that demonstrate that it takes into consideration the needs of these various sectors throughout Canada in its administration of the CVITP grant. Therefore, we have concluded that the CRA has sufficiently addressed the spirit of recommendation 5.
Recommendation 6
The Taxpayers’ Ombudsperson recommended that the CRA develop a volunteer retention and recruitment strategy, including necessary actions to ensure there are sufficient partner organizations, volunteers, resources, and filing methods, to expand CVITP services, especially in remote areas.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. In its 2021 update, the CRA indicated it was “committed to developing its CVITP volunteer retention and recruitment strategy to improve the program’s service delivery.”
The update also states the following:
The CVITP’s digital services help bridge the gap between organizations, volunteers, and clients by helping to connect all of the various players in the program. Furthermore, the CVITP’s digital registration and online search tools not only direct potential clients to local clinics, but also facilitate connecting those who wish to volunteer with organizations that are looking for help. CVITP virtual tax clinics also have the benefit of reaching remote locations where individuals must otherwise travel vast distances in order to attend traditional in-person tax clinics.
The CRA continues to recruit partner organizations and volunteers to expand the CVITP’s services, especially in remote areas.
CVITP Grant
On January 7, 2021, the Minister of National Revenue announced that a new CVITP grant pilot program, administered by the CRA, was launched. The CRA also stated that it “continues to develop its CVITP training and product materials to meet the needs of organizations and volunteers, and CRA agents on the CVITP dedicated telephone line.”
Through the CRA’s response, its update and the launch of the CVITP grant pilot program, we have concluded that the CRA has sufficiently addressed recommendation 6.
Recommendation 7
The Taxpayers’ Ombudsperson recommended that the CRA actively pursue, create new, and build on existing, flexible and creative areas of partnership, including those outlined in the report, to provide improved services through the CVITP.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. It indicated:
The CRA will expand its partnerships by focusing on new opportunities for expansion with other federal government departments and tax practitioner associations.
The CRA recently created the Strategic Partnerships Section to work collaboratively with other government departments and non-government organizations, to expand the reach of the CVITP to vulnerable populations.
Through briefings and information the CRA provides to our Office, we know that the CRA is working collaboratively with other government departments and non-government organizations to find ways to identify and reach hard-to-reach and vulnerable populations. For example, the CRA indicated in the 2024 update of its response to recommendation 4 in our 2022–2023 annual report, Upholding Your Rights:
CRA and Statistics Canada have explored a complementary way to estimate non-filing rates for six vulnerable population segments (Indigenous, youth, seniors, newcomers, housing insecure individuals, and persons with disabilities) by linking Statistics Canada’s Census data to CRA’s detailed administrative income data providing information on the sociodemographic and geographic characteristics of individuals who could be hard-to-reach or vulnerable.
During our outreach activities, we also heard from CVITP host organizations. These organizations mentioned that the CRA works collaboratively with them, through its Outreach Officers, to help them offer free tax clinics to vulnerable populations.
We have concluded that the CRA has sufficiently addressed recommendation 7.
Recommendation 8
The Taxpayers’ Ombudsperson recommended that the CRA create and/or improve upon mechanisms for matching volunteers with partner organizations, and for matching organizations that have one or more, but not all of the elements required to host a clinic, such as space, volunteers, coordinators, and potential users, so additional clinics can be hosted; both in online self-serve options and through CRA CVITP coordinator involvement.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. In its 2022 update, the CRA indicated:
The CRA has modified the role of CVITP Coordinators. As Volunteer and Outreach Officers, they are responsible for creating partnerships with organizations in the community for both CVITP clinics and Benefits Outreach. This collaboration helps to identify new organizations that are willing to share their space, host a tax clinic, and recruit potential volunteers. Once these resources have been identified, CVITP Coordinators start the matching process between partner organizations, as well as between organizations and volunteers. Sometimes organizations and volunteers are matched on the spot during Outreach activities.
With the implementation of virtual clinics, volunteers have the option of providing services to organizations across their province. This has made the matching of volunteers with partner organizations significantly easier. They can now be affiliated with any organizations in their province that are providing virtual tax clinics. Volunteers can also choose to volunteer with virtual clinics in Northern communities across Canada.
The CRA concluded that this action plan item has been completed and we agree that the CRA has sufficiently addressed recommendation 8.
Recommendation 9
The Taxpayers’ Ombudsperson recommended that the CRA ensure its policies and procedures promote and require direct, timely, and fulsome sharing of information between the CRA regions and headquarters, at the level of the CVITP coordinators, Outreach planning officers, and Partnerships officers.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. It indicated:
The CRA strives to improve the quality and consistency of service to Canadians nationally. It actively promotes the sharing and implementation of best practices by its program coordinators through internal communication vehicles such as biweekly regional teleconferences, the annual Community Outreach and Support Division conference, and Wiki discussion boards accessible to CVITP staff nationwide.
At a recent national program meeting, concrete protocols for communicating between Headquarters and the regions were established and agreed upon. These protocols will ensure timely and consistent messages are shared throughout the program nation-wide, and at all levels. The CRA will ensure that these newly established communication protocols are followed and adhered to.
While we do not have confirmation that the established communication protocols are followed, we have concluded that the CRA has sufficiently addressed recommendation 9.
Recommendation 10
The Taxpayers’ Ombudsperson recommended a significant portion of the Budget 2018 funding for the CVITP be used to provide resources and support directly to partner organizations and volunteers.
Our analysis of the CRA’s actions
The CRA indicated it agreed with the overall recommendation to provide increased support to the CVITP organizations. It also added that,
[…due] to an increase in funding, the CRA will be able to continue to expand the program, thereby helping thousands more individuals complete their taxes and access benefits to which they are entitled.
This is currently being accomplished through an increase in program-dedicated staff in both Headquarters and the regions which will result in additional support being provided to organizations.
In 2019, the CRA also highlighted its positive results in this regard with,
new volunteer training products being developed, a 13.3% increase in participating organizations, and an 8.5% increase in the number of participating volunteers. The number of individuals helped also increased by 5.3% which represents nearly 40,000 more taxpayers assisted by the program […].
We have concluded that the CRA has sufficiently addressed recommendation 10.
Recommendation 11
The Taxpayers’ Ombudsperson recommended that a grants and contributions program be reinstated for the Canada Revenue Agency (CRA), or that other legal and financial authorities be obtained, for the CRA to provide more effective support and resources directly to CVITP partner organizations and volunteers.
Our analysis of the CRA’s actions
The CRA responded that it agreed with the overall recommendation. Stated the following:
The CRA does not currently have the financial authority to provide funding to community organizations and their volunteers, however it does provide various other resources and support to partner organizations and volunteers such as, training, tax preparation software, promotional products, hardware (for example, through the computer donation program), a dedicated telephone line for CVITP volunteers, and support from local CVITP coordinators.
The CRA will explore the feasibility of seeking financial authorities to pursue grants and contributions that could further help organizations in their retention and recruitment of volunteers.
That said, “Budget 2018 provided the CRA with the authority to expand the size of the CVITP, helping more individuals complete their taxes and access benefits to which they are entitled; this expansion included funding for additional year-round benefit clinics and more outreach activities to vulnerable population segments.”
Subsequently, the CRA introduced a CVITP grant in 2021. The CRA is now able to allocate funding based on the total number of federal returns an organization files to encourage growth and facilitate retention. Any grant funding received should go toward the cost of running a free tax clinic, or to assist in growing and expanding tax clinics.
We have concluded that the CRA has sufficiently addressed recommendation 11.
Recommendation 12
The Taxpayers’ Ombudsperson recommended that the CRA simplify the registration process for CVITP partner organizations and volunteers.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation and stated that “simplifying the registration process could ease the burden while increasing the number of volunteers by the next tax filing season.”
It also stated the following:
The CRA will streamline the online application process for volunteers and will continue to explore ways of simplifying the registration process for volunteers while ensuring the protection of taxpayer information.
In our 2022–2023 annual report, we recommended that the CRA “simplify the administrative process for the tax clinics and continue offering the Grant Program for the Community Volunteer Income Tax Program (CVITP) and the Income Tax Assistance – Volunteer Program (ITAVP) in Quebec.” The CRA agreed with this recommendation and highlighted the tools it has introduced to streamline processes in order to simplify the administrative process to apply for the CVITP Grant. In its 2024 update to its action plan, the CRA confirmed that it continues to streamline processes to simplify the administration and application process.
We have concluded that the CRA has sufficiently addressed recommendation 12.
Recommendation 13
The Taxpayers’ Ombudsperson recommended that the CRA review its policy on processing multiple-year income tax and benefit returns (return) to determine any changes it can make to allow at least the current year return to be processed for the purpose of providing benefits, while a review is conducted of previous years.
Our analysis of the CRA’s actions
The CRA did not agree with this recommendation. It indicated that:
Processing the current year return first could result in undue hardship for the taxpayer as a refund for a current year return may have to be subsequently repaid if a prior year return results in a debt to the taxpayer’s account.
While the CRA indicated it will not pursue this recommendation further, it said:
[It will] update training material and its "What’s new" messaging to explain the rationale for multi-year processing timelines and encourage that this explanation be shared with taxpayers and their representatives […].
Taxpayers would probably prefer to see their returns processed in a timely manner, even when they have filed more than one return. However, we agree with the CRA that, if this is not possible for the reasons outlined, an explanation of the rationale should be provided to help taxpayers understand the length of the processing time. We have checked several CRA web pages; however, while the CRA provides important information on Get ready to file a tax return - Personal income tax, we did not find any relevant information or explanation on processing multiple-year income tax and benefit returns. We encourage the CRA to do so, as stated in its response to our recommendation.
Recommendation 14
The Taxpayers’ Ombudsperson recommended that the CRA clearly communicate to CVITP volunteers that they are able to request from the CRA a greater number of paper copies of forms and publications than the limit noted on the CRA’s website.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation. In its response, the CRA confirmed that:
[O]rganizations participating in the CVITP can order any form or publication and do not have limits placed on the number that they can order. Confusion regarding limits to the number of forms that can be ordered stems from attempts by organizations to order forms via the online portal that is available to the general public.
In the 2021 update to its action plan, the CRA informed us of the following:
Organizations participating in the CVITP can order any form or publication and do not have limits placed on them. For CVITP organizations and volunteers, forms and ordering templates have been made available through regional coordinators and taxpayer service agents, who in turn provide details to organizations and volunteers with regards to ordering procedures and print limits where applicable. Orders submitted through the CVITP are not subject to the same quantity limits. Additional efforts are being made to communicate this to participating organizations.
We have not received complaints from CVITP organizations or CVITP volunteers regarding this matter. Therefore, we have concluded that the CRA has sufficiently addressed recommendation 14.
Recommendation 15
The Taxpayers’ Ombudsperson recommended that the CRA conduct a complete review of the training provided to CVITP partner organizations and volunteers, to improve the quality, flexibility, accessibility and comprehensiveness of the CRA’s training.
Our analysis of the CRA’s actions
The CRA agreed with this recommendation:
In 2019, the CRA reviewed the training material offered to volunteers and completed a learning needs analysis in collaboration with regional representatives, organizations, and volunteers to determine training gaps and develop new material. The CRA now offers enhanced web-based training on specific topics and frequently seen client scenarios.
In addition to the new training material, the CRA will refresh existing training modules and create new modules to address the following topics:
- The need for EFILE returns to be transmitted within 48 hours;
- Targeted situations such as, the handling of tax exempt income for Indigenous peoples and;
- Information on the CVITP program overall.
The CRA currently provides approved CVITP volunteers and participating organizations with resources to support program requirements and training on completing tax returns, including videos, case studies and job aids.
Through the actions listed above, we have concluded that the CRA has sufficiently addressed recommendation 15.
Conclusion
Of the 15 recommendations made in the report, the CRA agreed with 14 of them and its action plan has sufficiently addressed these recommendations. Over the years, we have also seen the ongoing efforts the CRA is taking to explore options to improve and to simplify the administrative process of the CVITP grant.
There are, however, still some concerns regarding the new funding model that the CRA has been using since May 2025. With this new model, even though there is still a maximum payout of $30,000, the supplemental assistance, that was introduced in May 2023, for Indigenous, northern and rural/remote communities has been eliminated.
We will continue to provide feedback and collaborate with the CRA to identify opportunities for service improvement regarding the CVITP. We will also continue to monitor the complaints we receive, information the CRA provides on its relevant web pages, outreach (when possible), and media reports.