Finally, you have filed your taxes and accepted a notice of assessment, but wait, you find a letter in your mailbox from the CRA requesting to see your paperwork. So, what are you supposed to do? You need to avail a CRA audit protection to save you from scrutiny and investigation by the CRA.
According to a reliable tax law firm, the letter you have received could be an inquiry notice. If you claimed a medical expense deduction and filed it into your return, the taxman may request you to provide copies of all receipts that prove you are qualified for the tax break in question.
All you must do is to secure all the documents and respond to the deadline within 30 days from the date of the letter. The agency may not permit the tax break if you can’t support such claims and may prefer to have an audit personally or through your business. The tax records must be within six years whenever you’re a subject for a review.
So, let’s say you are audited as indicated in the dreaded notice. If you are covered with CRA audit protection, the coverage will represent you and feedback on what CRA needs to know about your documents and taxes. They will be your professional help once you receive the audit letter.
They can be represented by a tax accountant with proper eligibility. The experts will help create a simple audit on the claimed entitlements and you can show the documentation to CRA. However, if the accountant has messed up with your documents, you can best work with a tax lawyer.
You also need to understand whether you’re going to win the audit or settle it. You need to ask your representative on the chances you have over the audit. If the CRA is right with the audit, settle what’s due fast and painlessly. This way, you avoid interests and penalties charged on you.
Or better, ask the provider of your CRA audit protection on what they can do to help you. If your coverage includes fees and penalties, then you do have nothing to worry. You can also appeal the case within 30 days after the audit.