July 30, 2019

Canada: Amending Your Tax Return – Careful, Now

Sometimes in the rush to file an annual tax return mistakes or accidental omissions occur. On the other hand, businesses or individuals may receive a Notice of Reassessment, which requires additional work before your previous year’s tax return is finished. Depending on which of these two groups you’re in, there are different ways to proceed. If you receive an unfavourable Notice of Assessment, then review it to see why it has been changed. The first place to look is at the Explanation of Changes because it may be a simple clerical error. Then, review the Summary section. Once you understand the reason, then you can proceed.

Key Takeaways:

  • If you need to amend a return, the CRA prefers that you write to the Tax Centre where you filed your return. Either use form T1-ADJ with an explanation and any additional material, or make the changes to your return through CRA’s electronic service.
  • If you received a Notice of Assessment, then there is a time limit to object of 90 days from its mailing date or within one year of the due date of the T1 return.
  • It’s often best to contact the CRA first, since depending on the reason, it may be cleared up on the spot. Filing a Notice of Objection is then the next step.

“If you receive an unfavourable Notice of Assessment, the first thing you must do is find out why CanRev has disallowed a claim or otherwise increased your taxes. If there’s a difference between your figures and CanRev’s, it’s quite possible that no one has even looked at your return beyond a keypunching clerk. You have a legal right to appeal your case. More importantly, if you do this properly, you stand a very good chance of winning.”

Read more: http://www.mondaq.com/canada/x/796962/tax+authorities/Amending+Your+Tax+Return+Careful+Now

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