All the tax seasons are now over. May 2nd was for personal taxes, June 15th for those that were self employed and their spouses and June 30th was for Incorporated businesses with a December 31st year end. So, what do I now?
This is the time that many people get those brown envelopes from the Canada Revenue Agency (CRA) asking to review parts of your tax returns. Answering these letters on time is very important. CRA usually gives you 30 days to reply to them, before they take additional action on your return. They could be asking to see your donation receipts, medical receipt, moving expense receipts etc. You might have got a letter asking for your world wide income if you are new to the country. There are a lot of things CRA could review.
Now you are going to say that I gave this information to my tax preparer, so why do they need it now. It is because when we file your returns, we report the amount you had for donations or medical etc. We do not send the receipts or documentation. We are only required to do that when requested by CRA. That is the little brown envelopes that come later.
Now you may have been reviewed and you did not get that brown envelope. That is because your tax preparer has chosen to have all the Pre-assessments and Post-assessment reviews to be sent directly to them. That is what I do for all my clients.
Once I get those letters, I reply to them the same day they arrive, and I can use my Represent a client portal with CRA to upload the documents directly to CRA. Some other companies like some of the larger ones, sell an insurance policy to you and if you purchase it, they will look after your review. If you do not purchase it, then you pay a fee which is almost the same cost of the tax return to fix it. Do your taxes with me and the cost is part of your fee that you pay when your taxes are done? There are not other charges. I want to make sure you are at peace with your taxes and when CRA comes knocking you do not have to fear answering them properly.
If you get that brown envelope, because even though I tell them to send them to me, sometimes they do not, then advise me that you have it and I can go online and print off your letter and respond to it. If you do not reply to the letters, then CRA will reassess your tax return which normally results in you owing CRA money.Doing your taxes is more than a one-time thing. When you use our business, then we are looking after you all year round. We will deal with CRA for you, help you fill out forms and be there to answer your questions. Remember, act when you get a letter from CRA. It is easier to fix it this time of year, than waiting until tax season when they are going to take your refund to pay your reassessment. We are there all year-round for you.