January 2, 2019

What to do if your taxes are under CRA review or audit

Tax time can bring stress and anxiety, but it doesn’t have to be something that leaves you cowering in fear of the dreaded tax audit. Canadian Revenue Agency conducts reviews of tax returns according to regulation, and just because an audit or tax review notice has been sent doesn’t necessarily mean trouble is looming for your finances. Anyone contacted by CRA should simply respond to the notice and work through the process in a calm and orderly fashion, however tempting it might be to try to ignore the notification.

“Your income tax file may be selected for review randomly, or for reasons such a discrepancy between the figures you cited and those of a third-party, such as your employer. An unusual change in your activities, such as an increase in medical expenses or child care costs, may also trigger a closer look from the tax collector.”

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