When you receive a Notice of Assessment from the CRA, you need tax audit help. When you send in your tax returns to the CRA, its computer servers will perform several checks on your file and if there is any suspicion or doubts on inaccuracy or misrepresentation, a Notice of Assessment will be issued to you. This notice is generally about two or three pages in its length and will include details of the income that you have earned and the tax amount you have paid.
This Notice of Assessment is important from the point of view of correspondence as it will contain the amount of interest charges and penalties assessed. If the balance due to the CRA is much different from what you have filed for, you have to make an inquiry and seek tax audit help. There are cases when the computers of the CRA have made erroneous calculations. If this is the case, then it is a matter of minor misunderstanding which can be cleared up easily by your tax representative. You have to get the assessment notice reviewed with care for any surprises of this nature as it could make a big impact on the amount of taxes and interest payable by you at this stage.
The best kind of tax audit help that you can get is in the preparation for the audit. When you face a CRA tax audit, there is nothing much you or your professional tax representatives can do but get organized as early as possible. You will not be able to submit a pile of documents to the CRA auditor and ask him or her to sift through them. The best way to go about this is to follow the list of documents that the CRA has mentioned in the Notice of Assessment. The documents that you will need to keep ready for the audit will mostly be your bank statements, cancelled cheques, receipts for donations made to charitable organizations and those items that have been sold for a gain. You will need bills or invoices for business expenses incurred by you. You will also need records of your mortgage payments and bills for your travel or entertainment expenses.
An experienced tax consultant becomes your best defense against the unpredictable queries of a CRA auditor. More often than not, a CRA audit will bring with it an auditor’s personal biases and his or her own perspectives on your tax returns. It is important on your part to seek tax audit help from a reliable tax consultant who can stand by your side and show you your rights to go through a fair tax audit.
Experienced tax consultants are perfectly placed to offer you tax audit help as they are trained and have the necessary expertise in Canadian tax system and the internal policies of the CRA. They are expert in fighting for your taxpayer’s rights. They will make sure that the tax audit is conducted on a fair basis and without you getting intimidated and bullied.