I got reassessment notices from the CRA going back to 2005. AFAICS the calculations are all the same as they ever were, but the final reassessment from 2015 concludes that my 2016 unused RRSP contributions from previous years is a very substantial amount -- nearly putting me in an over contribution position. I am a bit surprised to have the CRA going back 10 years. I thought they could only go back 7.
I called the CRA and asked them what's up with this amount. The guy I spoke to sifted through the data and recons that in 2006 I made an RRSP deposit that I never deducted and since it was in the first 60 days and could be carried forward, and I generally do lump sums in the first 60 days each year, it has been carried forward ever since. Till now. They are working from records sent by the bank, and according to them, there were two deposits of the same amount. My records show only one. The CRA says I will need to go to the bank and get them to iron out their reporting to the CRA, if it is a mistake -- which I believe it is. Any thoughts on how likely the bank is to be able to handle this?
I'll go back and talk to the bank, I guess. But I am a little torn on how to handle this. On the one hand, believe I have been effectively cheated out of contribution room in my RRSP -- there is $5K of allowable contribution I should get to use, but may not. On the other hand, maybe I should just ignore the error and take the deduction for the $5K CRA says I deposited, since that's worth $2.5K, and consider it a gift for my trouble.
If the bank or the CRA figure out that they screwed this up, am I going to have to revisit the whole thing in another 10 years? What *is* the statute of limitations on this kind of crap?