From: AlanBaggett@volcanomail.com   
      
   You Can Fight the Taxman With Enough Paperwork : CRA SOTW   
      
   Caroline lives in North Vancouver with her husband, daughter and father.   
   Posted: 06/17/2015 8:40 am EDT Updated: 06/17/2015 8:59 am EDT    
      
      
   Once you file your taxes, you want to forget about them. But the Canada   
   Revenue Agency may not let you   
   No matter how you file your tax return, you should receive a Notice of   
   Assessment from the Canada Revenue Agency (CRA). Your NOA may not seem like an   
   important document. But it provides a summary of your tax return and lets you   
   know whether or not the    
   CRA agrees with what you have submitted. In some cases, the NOA numbers may be   
   different than yours.   
      
   It may be easy to dismiss the NOA and forget about it but you should hang onto   
   it. It will make life easier next year when you file. It contains a lot of   
   pertinent information. Receiving your NOA does not mean the CRA has approved   
   your tax return. It    
   means they have processed it based on the information you provided and what   
   the CRA has in their files.   
      
   The CRA conducts random reviews over the summer months to make sure that   
   people are claiming their credits correctly. These requests from the CRA are   
   not audits -- they are simply requests for supporting paperwork. There are   
   some deductions and credits    
   such as childcare expenses, larger than usual medical expenses and moving   
   expenses that tend to trigger a request for more information. If you had some   
   major dental work done in 2014, the CRA is probably going to ask for a copy of   
   your receipt. Since    
   these deductions tend to result in bigger tax refunds, the CRA wants to make   
   sure they are legit.    
      
   If the CRA requests receipts or more information to support a claim, you   
   usually have 30 days to provide the paperwork. Fail to respond to the CRA in   
   time and they will reassess your return minus the credit or deduction and send   
   you the bill. If you miss    
   the deadline but have the paperwork, you will have to file a T1 Adjustment   
   Form in order to re-claim the credit and be sure to send along the supporting   
   documents. Although not impossible, it is just easier to meet the CRA's   
   deadline the first time.   
      
   However, some taxpayers will receive a Notice of Reassessment usually with an   
   amount owing. In these cases, the CRA disagrees with a claim or deduction and   
   re-calculates your tax return based on the new numbers. The good news is you   
   don't have to agree    
   with the taxman but you need to take steps to fight the reassessment.   
      
   If you don't agree, you have to file a Form T400A Objection - Income Tax Act   
   and mail it to the Chief of Appeals at your intake centre. You must detail the   
   reasons for the objection and provide all your proof and reasons why you think   
   the reassessment is    
   wrong. Supporting paperwork is always helpful so include it.   
   The CRA should send you a letter to acknowledge your objection. Your paperwork   
   will be given to an Appeals officer who will contact you to discuss the   
   matter. This process can take up to six months or longer so be prepared to be   
   patient. The Appeals    
   officer may request additional information depending on your objection.   
      
   The Appeals officer reviews the case and then issues a result. There are three   
   options:   
   1. Allowed in full: Your objection was successful and the amount will be   
   reversed   
   2. Allowed in part: Some of your argument was accepted and your return will be   
   adjusted to reflect what was accepted.   
   3. Not allowed: You are on the hook for the disputed amount.   
      
   Once you file a Notice of Objection, the CRA must suspend collection action   
   until the matter is resolved. However, if you are found to be using the tax   
   review process to avoid paying a tax bill, you may be hit with a penalty.   
      
   If your Notice of Objection is disallowed, you can appeal to the Tax Court of   
   Canada. If the amount of tax in dispute is less than $25,000, you can do so   
   under Informal Procedure. The court is not bound by the formal rules of   
   evidence when conducting a    
   hearing under Informal Procedure and there are no filing fees, which makes it   
   easier for taxpayers to represent themselves.   
      
   For taxpayers facing a reassessment, my advice is usually to pay the   
   outstanding amount if possible, and then work your way through the objection   
   process. If you win, you will receive a refund. If the taxman doesn't agree   
   with your case, then you are not    
   facing additional interest charges.   
      
   ----------------------------------------------------------   
   Miss a Tax Tale Miss a lot!   
   Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com   
      
   ------------------------------------------------------------   
   Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)