You need to know what an inquiry notice is, especially if you’ve filed your taxes and received a notice of assessment. The inquiry notice is a letter from the CRA asking to see more of your tax documents. If you have claimed a deduction for medical expense, for instance, and filed your return electronically, the taxman will ask you copies of the receipts to ensure you are eligible for this tax break. What you need is to provide all documents and respond to the 30-days deadline upon receipt of this letter. You may also need a CRA audit protection to ensure someone is backing you up from the inquiry notice.
The CRA can go desk audit especially if it wants to dig deeper into your returns. You are subject to such audit especially if you have claimed losses and your return shows real estate transactions. They can also do field audits, which they will show up physically to your home or office. With this, you will need a CRA audit protection before you’re actually audited by a taxman, and so here are what you can do:
- Be Respectful and Cooperate
The worst thing to happen is to pretend you didn’t hear the CRA is coming. Whether you like it or not, you’ll be audited by the CRA team and there’s no stopping it. So, what to do when they’re here is to be organised and cooperative with the process.
- Get Professional Help
If you receive an audit letter, you need to secure a CRA audit protection for professional advice. Depending on what you need, you may need lawyering or a tax accountant with great qualifications to represent yourself in this time of need. He can perfectly help you in this simple audit, where you just need to present the paperwork to show it. If the accountant can’t help, then you need a tax lawyer for legal help.
- Appeal the Case if It’s Worth It
After the CRA audit, they will tell you if they find some mistakes and you need to pay more taxes. You have 30- to respond to the findings. The agency will then take another look at your returns and get back to you. If you’re still unhappy with the assessment, you can take the problem to a tax court. A CRA audit protection can also help you with this dire need.