I Received a Letter from CRA !!

If you get a letter from Revenue Canada requesting further information from you to substantiate a claim you made on your income tax return – DON’T PANIC!!!   BUT DON’T IGNORE IT!!!

Some of the claims made on your income tax return do not have to be supported by receipts or proof (i.e. donations, childcare, medical, rent receipts, etc) when your taxes are filed.  However, Revenue Canada has the right to ask for the ‘proof’ up to 6 years after you file your income tax return.

From mid-July to mid-November, Revenue Canada does just that and turns their attention to “REVIEWING” individuals.  This is not personal…they are NOT targeting you.  It is simply a means of keeping Canadians honest by having them prove the claims they made on their tax returns.

If you feel comfortable, you may send the information in yourself by following the instructions Revenue Canada gives in their letter.  From experience, it is advisable to send photocopies.  Please note that these are form letters and are sometimes 3 pages long.  You only need to send the information that applies to you.

It is part of my service to assist you in this process and I do so at NO CHARGE (however, clients are expected to pay any postal or courier if it has to be mailed or accounting fees if the review is extensive) .  If you would like me to take care of this for you, simply drop off the letter that Revenue Canada has sent you AND the envelope that contains your Income Tax Return (and supporting documents).  This is the one I gave you that has the sticker on it that said you must keep it for 6 years (with a destruction date included).  I will submit the information requested online using your CRA Account and keep it for you until the next taxation year.   Simply use the our secure red mail box (attached to the house) to drop off the paperwork any time.

Either way, do not ignore the request for information that you receive from Revenue Canada.  If you do not send in the requested information by the date given, they will re-assess you assuming you cannot substantiate your claim, and you will then have a balance owing which will include interest from April 30^th to date. This of course, would be reversed when they receive the information but it can be a nasty surprise.