Come mid-summer, the CRA will be close to finalizing their assessment of taxpayers returns. While there will still be a few people awaiting assessment, the Canada Revenue Agency (CRA) will be focused on post-assessment reviews.
In a previous blog, “Why Is My Tax Return Being Reviewed?”, we discussed the types of post-assessment reviews and the reasons that the CRA may be reviewing your tax return. In many cases, the CRA will review your return as a way of verifying the validity of your claim, requiring you to provide supporting documentation for tax credits and deductions claimed.
When the CRA does require additional documentation as proof of your claim, they will send a letter.
This letter will include a list of documentation the CRA requires and/or the amount for which there appears to be differences. The letter will also give a reasonable amount of time in which you are required to respond.
If you do receive correspondence from the CRA requesting additional documentation, it is in your best interest to respond as quickly as possible.
Doing so will speed up the process and will lower the likelihood of you failing to respond within the required time frame. This could result in a reassessment, even if your claims are legitimate. This is because if no response is received, the CRA has to assume that the required documentation or records do not exist.
If the due date is fast approaching and you have not contacted the CRA, they may send a follow up letter or reach out by telephone, using the phone number you have on file - you don’t want to depend on this.
It is important to note that the CRA will never email taxpayers or request payment for taxes owed by wire-transfer or pre-paid credit card. They will also not threaten that failure to make payment will result in arrest, imprisonment or deportation. These are all signs of a scam.
How do I respond to a CRA post-assessment?
Your response should include the reference number provided in the CRAs letter, a written explanation and any documentation requested by the CRA.
It can either be mailed to the address provided in the letter received, or online using your “My Account”. More information on how to do this can be found on the CRA website.
For more information about responding to a post-assessment review, contact us today.