Received Notice or Letter from CRA? Things you must know!

Received Notice or Letter from CRA? Things you must know!

There are various reasons for the CRA to be in touch, some of which may even be to your advantage, despite the fact that it's easy to anticipate the worst, like getting a tax bill or a notice of audit.

1. Chances are it's a Notice of Assessment if the CRA shows up in your mailbox 2 to 8 weeks after you've filed your tax return (NOA). Your income and the credits and deductions you claimed on your taxes are summarised in the NOA. Most importantly, it informs you if you are receiving a refund or a debt.
2. It is important that you create an account to receive email notifications. The CRA will email you whenever a significant change is made to your account or when you receive new notices or letters if you sign up for CRA My Account online mail. You won't ever again be dependent on postal service. Be careful not to disregard CRA emails.
3. Your CRA notice can include information about the amount you'll receive if you've applied for the Canada Child Benefit (CCB) and have one or more children under the age of 18. In the unlikely event that you have received an overpayment on a previous instalment, this notification will outline how the CRA intends to recover the funds, most likely by taking it out of further CCB payments or your refund for unpaid taxes.
4. You should watch out for a GST/HST notice if you own your own firm. The CRA sends you this letter after processing your tax return to let you know if you owe money, have a refund coming in, or have neither. With the help of the GST/HST credit, Canadians with low or modest incomes can recoup a portion of the sales tax they spent on goods and services on a quarterly basis. If the CRA gives you a GST/HST credit notice, you should expect to get a refund.
5. If you get the dreaded Notice of an Audit, don't freak out. Think about what being audited actually entails for a moment. An audit is essentially an a cross-referencing process where the claims made on your return(s) are compared to your records and receipts from the previous six years. The best course of action in such a situation is to swiftly provide the needed information and to act politely at all times. The CRA will send you a final letter outlining its findings after the audit is finished. You will have 90 days to file an appeal if you disagree. Which is yet another reason why you should open this message as soon as possible.
6. Do not panic if you receive a Request for Information from the CRA. Most likely, it's a standard review to guarantee the accuracy of the data you included on your tax return. Usually, this letter requests supporting documentation for a claim or deduction you made on your tax return. I'm done now! The quicker you respond with the needed data, the quicker it will be over. Contrarily, disregarding this letter will generate suspicion and might lead to issues where there weren't any before.

Always remember that A letter from the CRA is significant and can have a deadline. Open it immediately. You can find out from your Notice of Assessment (NOA) if you owe money or are receiving a tax refund.