Congratulations on meeting this year’s personal tax deadline!
We can now say goodbye to tax season, stretch, and relax….but wait! There are a few things you should still be aware of. We want to give you a heads up about what to expect next and provide a few tips that may help.
The Canada Revenue Agency (CRA) usually processes your return within 2-6 weeks and you will get your notice of assessment online or in the mail, but that doesn’t mean it is over. CRA can contact you at a later time letting you know that you have been selected for review. This can be very stressful, but don’t panic! This letter doesn’t mean you are been audited; a review is less detail than an audit, and sometimes the CRA selects individuals randomly, while other times they just want to verify information for a different number of reasons that are not suggesting that you did something wrong or that you are in trouble. If you get a letter from the CRA, it will provide you with instructions and a link to get a checklist of what they specifically want to see. Alternatively, contact us for help! The one thing you should not do is ignore it. If you do, the CRA will adjust your return to what they see fit and it will most likely result on a balance due from you which they will also charge interest on.
So… When can I finally relax?
Well, technically, it could take a while. The CRA can audit or review your return for up to four years from the original notice of assessment. This period can be extended if the CRA suspects fraud. When it comes to tax documents (i.e., copy of the return filed, logs for mileage, receipts), we suggest keeping them for at least 6 years after the date in which you filed. These tax records are important to support the information you provided to the CRA.
Here are a few tips that can help relieve some stress
- Check the status of your return
- It helps to know CRA has assessed your return using MyAccount. You can also review any mail through MyAccount and stay on top if they are asking you for any additional information.
- Ask for an extension
- CRA usually gives a 30 days deadline from the date of the letter requesting additional information for you to respond, however, they will usually have no problem extending this date if you call them with a reason for which you need the extra time.
- Stay organized
- Keep your information in folders or envelops and have a permanent place for all your prescriptions or other medical receipts, charitable receipts and investment documents you used on the return. While you are at it, create new folders or envelops to start accumulating your 2018 information for next year’s taxes.
- Stay current with tax changes
- Subscribe to CRA electronic mailing list to get emails when they release new or important information to the public. Click here to subscribe.
What if I need to make a change?
If you forgot to include information in your return, or just discovered a mistake on the submission, you need to first wait to get your notice of assessment and then amend the return. We are here to help you though this process and can do the T1 adjustment for you!
For those who missed the deadline, don’t panic! An accountant’s job is never done – we’re still here to help. Please reach out to us at 1-866-822-9992 and a member of our team will be happy to assist you!