Each week I pull together accounting, tax, and AI news that matters to small business owners and individuals in Canada and the US, in plain English, with links to the original sources. Here is what happened in the week of November 2, 2026.
Canada
1. Federal Budget 2026 arrives on November 5
Finance Minister François-Philippe Champagne announced that he will table Budget 2026 on Thursday, November 5, 2026. The government says the budget will propose measures to unlock investment, move major projects forward, and make life more affordable, building on steps already taken such as the new Productivity Mega Deduction. In a speech in Toronto ahead of budget day, the Minister said the budget will include measures for small and medium-sized businesses aimed at simplifying parts of the tax code. Until the budget documents are released, these are only signals, not rules. Federal budgets can include tax measures that take effect on budget day, so if you are planning a significant transaction this week, such as selling a business, shares, or property, it is worth a conversation with your adviser first. I will cover the measures that matter for small businesses and individuals in next week's roundup.
Sources: Department of Finance Canada (October 20, 2026); The Globe and Mail
2. Get your CRA account ready before tax season, including for pre-filled returns
On October 29 the CRA encouraged everyone to register for, or confirm they can sign in to, their CRA account before tax season. A working account lets you use Auto-fill My Return in tax software, manage your authorized representatives, track refunds and benefit payments, view contribution room, and authenticate when filing a 2026 return through NETFILE or EFILE. The CRA also expanded the list of government-issued photo IDs accepted by its document verification service, which can give immediate access without waiting for a security code by mail. Separately, the CRA says that starting in March 2027, 1 million eligible individuals will be invited in their CRA account to file their 2026 return using a pre-filled return. To be considered, a person needed to have filed a 2025 return by October 31, 2026, have a lower income and a simple, non-taxable situation, have a CRA account, and have their correspondence preference set to electronic mail. Meeting these points does not guarantee an invitation, and an invited person still reviews, completes, and submits the return themselves.
Sources: Canada Revenue Agency (October 29, 2026); CRA, The CRA is making tax filing easier
3. CRA issues a new round of workforce adjustment notices
The CRA notified 735 employees on October 28 that their positions may be affected by workforce adjustments, and it expects up to 260 employees to leave the agency. The CRA gave guarantees of continued employment to 110 affected employees, mainly in compliance, and says it expects services to continue without disruption. The Union of Taxation Employees said affected members work in areas including the Appeals Branch, the Assessment, Benefit, and Service Branch, and the Compliance Programs Branch, and the Public Service Alliance of Canada warned of longer wait times. My practical advice is the same as always: respond to CRA letters early, keep copies of everything you send, and use your CRA account or My Business Account where you can instead of waiting on the phone.
Source: BNN Bloomberg (October 29, 2026)
4. CPA Ontario leads a coalition calling for tax reform
CPA Ontario is leading a coalition with the Canadian Chamber of Commerce, the Ontario Chamber of Commerce, the Canadian Federation of Independent Business, the Canadian Federation of Agriculture, and the Ontario Federation of Agriculture to call for comprehensive tax reform. Together the groups represent more than 700,000 businesses and professionals. Their report, Tax Reform for Growth in Canada, argues that the complexity of the current system diverts resources from productive work and discourages investment and entrepreneurship. The coalition welcomed the Productivity Mega Deduction as a step forward but says more is needed. With the budget days away, this is the backdrop for any simplification measures announced on November 5.
Source: Canadian Accountant (October 25, 2026)
United States
5. IRS reports its fiscal year 2026 results and a shift to digital services
The IRS reported that it collected $5.6 trillion in fiscal year 2026 and that, during the filing season, the average refund was up 11 percent, with about 90 percent of electronic filers who received refunds getting them in less than 21 days. Individual Online Account users grew about 34 percent to roughly 37.6 million, payments through online accounts rose 57 percent, and the IRS launched a new mobile app. The IRS also issued 12 percent more refunds by direct deposit, in line with Executive Order 14247, which requires eliminating paper checks. If you file a US return from Canada, set up your IRS Individual Online Account now and confirm how you will receive any refund, because paper checks are being phased out.
Source: IRS, IR-2026-129 (October 29, 2026)
6. Draft instructions for Form 5472 posted
On October 30 the IRS posted early release drafts of several tax product instructions, including the Instructions for Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (December 2026 revision), and the Instructions for Form 2220, Underpayment of Estimated Tax by Corporations. The IRS notes that early releases are drafts and should not be relied on or filed. If you are a Canadian resident who owns a US corporation or a US LLC, ask your adviser whether Form 5472 applies to you, and watch for the final instructions before your next filing.
Source: IRS, Recent Development for Tax Products (October 30, 2026)
AI in Accounting and Finance
7. Agentic AI tools for tax work arrive in Canada and the US
Thomson Reuters launched CoCounsel Tax Canada, an AI platform for Canadian tax professionals that draws on Taxnet Pro's Canadian legislation, regulations, government guidance, and commentary, and is designed to produce traceable outputs that a professional reviews. In the US, Wolters Kluwer announced new agentic capabilities in CCH Axcess that prepare individual returns from client documents and prior-year data and flag items for review. Both companies stress that the professional stays in control and accountable. For you, the takeaway is that AI can speed up preparation, but a qualified person should still review your return and the sources behind any advice.
Sources: LegalTech.ca (October 28, 2026); CPA Practice Advisor (October 28, 2026)
8. Dext connects bookkeeping data to Claude, ChatGPT, and Copilot
Dext launched AI Connector, which lets accounting and bookkeeping practices in Canada and other countries ask questions about their Dext data in plain language through Claude, ChatGPT, or Microsoft Copilot. The connector is read-only, respects existing user permissions, and cannot change records. Dext notes that the data used to answer a question is processed by the chosen AI provider, whose data policies apply. In a Dext survey of 500 Canadian accountants and bookkeepers, half said they knew of businesses that suffered direct financial losses after acting on incorrect or misleading AI-generated advice. Before you connect any AI tool to your financial data, check whether it is read-only and how the provider handles your information.
Source: Fintech.ca (October 26, 2026)
What this means for you
- Planning a big transaction this week? Talk to your adviser before the November 5 budget, since some measures can apply from budget day.
- Can you sign in to your CRA account? Check now, add a backup multi-factor authentication option, and set your correspondence preference to electronic mail.
- Receiving benefits? File your return every year so payments such as the Canada Groceries and Essentials Benefit (CGEB) are not interrupted.
- Dealing with the CRA? Respond early, keep copies, and use online services where possible.
- Filing in the US? Set up your IRS Individual Online Account and confirm direct deposit for refunds.
- Own a US company or LLC? Ask whether Form 5472 applies and wait for the final instructions.
- Using AI tools? Prefer read-only access, check data policies, and have a qualified person review the results.
Questions about how these changes affect you?
Milinchuk CPA helps small businesses, corporations, and individuals in Toronto and across Ontario with bookkeeping, corporate and personal tax, and advisory. I serve clients in English and Russian.
Disclaimer: This post is general information, not professional advice. Tax rules and proposals change, and your situation may differ. Please consult a qualified professional before acting on anything in this article.