It is possible that you will receive notice that you are to undergo a tax audit and this can be for a variety of reasons. In some cases it will be because something was picked up in the tax return you entered, but it is just as likely to be because you were selected at random and there was nothing suspicious found in your file. You will want tax audit help whatever the reason for your selection. There is always the chance that they have indications that you have earned more than you have let the authorities know about.

It could be that interest from savings has not been declared and this is something you need to do as the bank is going to pass on this information and you do not want to undergo a CRA audit for such a simple mistake. Often there will not be an audit set in place right away, but rather you will be given the chance to agree to the new figures that will include the missing information. This is an easy way to deal with the issue, but there is the chance that you are right and they are wrong, so you will want to argue your case and it is at this stage that you should seek tax audit help.

You could find that there are disagreement when it comes to other areas of your business and the authorities are actually questioning the validity of some of your expenses. It is here that you will not want to go through the process of audit alone and will want tax audit help as the people providing it will have much greater knowledge than you have. Planning to put up your own defense will not be the best cause of action, as there could be a lot of money involved and a specialist will have more chance of winning the case and protected you from additional payments being made.

When you have tax audit help, there will be someone else who is looking at your return and picking up sections where you may have gone wrong. Not only will they be looking at the areas that are being questioned, but they may see things that you have forgotten to include, and the addition of this could mitigate any further payments you would have been expected to make. A CRA audit may actually become fairly easy and straightforward when you go into it with tax audit help.

While it would be preferable if you were not subjected to an audit, there are good reasons why they happen. Most people do work within the law when it comes to paying their taxes, but sadly there are some who do not and Tax Audit is the only vehicle available to the CRA in order to make sure that people pay the right amount of taxes.

A CRA tax audit could become a daunting task that is not so easy to manage. When you receive a Notice of Assessment from the CRA, you can seek help from experienced tax professionals so that they can guide you in the resolution of all tax audits with CRA auditors.

The auditors who conduct the CRA tax audit may make the taxpayers feel defensive. It will empower you when you gain some knowledge about the process of the CRA tax audit and about your legal rights as per the Income Tax Act. You need the help of tax professionals who focus specifically on the resolution of tax audit problems with CRA when they represent you in your CRA tax audit process.

The task of the auditor is to assess the tax dues and not to think in terms of the best interest of the taxpayers. There may be some clashes during the process of the CRA tax audit. Taking the help of tax professionals?can minimize your interactions with the auditors and it will help bring your stress levels down so that you can focus on the business at hand during your times of financial hardship. Not being able to negotiate with the auditors during a CRA tax audit can become unproductive and it may also lengthen the duration of the audit, bringing in unnecessary tax assessments and penalties.

During the CRA tax audit, the auditors may require additional information concerning your records of income and expenditure and documentation. They may also seek some answers to questions in writing. Information becomes the basis of all tax assessments. It will help you tremendously if you understand what documentation and information you have to provide to the CRA and you may have to consider your answers very carefully to the questions so that you have a strong footing during the CRA tax audit. Tax professionals?will be able to help you in understanding why the CRA auditor is asking certain questions or seeking specific information.

Spending some time with the tax professionals will help you in the preparation for the CRA tax audit and will improve your chances of an efficient resolution of the assessment. You have to remember that the CRA has broader powers so that they can request you to provide all the supporting evidence or document to sustain your tax claim. The CRA can use documents, notes and all kinds of discussions against you if they feel that they have a strong case.

The tax professionals?will help you in the review of all relevant documentation and will prepare answers to certain expected questions from the CRA auditors. They will also help in the preparation of written submissions to a CRA auditor to support your filing position and explain your stand on the tax issues of dispute during the CRA tax audit.

Even if you complete and file your taxes accurately, there is still a possibility that the CRA may decide to audit your tax returns. It is wiser to seek guidance of an experienced tax accountant to offer a defense strategy for a possible CRA tax audit.

You may have vast theoretical knowledge about tax and affairs of the CRA, but many people have learnt that it is not an easy struggle to tangle with the tax people. Handling a CRA tax audit comes only through experience. The tact does not come through formal education; it comes by learning from battle field experience on first hand basis and knowing all the tricks.

While making assessments on your taxes filed, a professional tax accountant would definitely be able to come to your rescue. A CRA tax audit is a scrutiny of taxpayers? documents and records to establish the calculation of their taxes and check whether the returns have been accurately completed or if there is a potential to charge interest or penalties to the taxpayers.

A CRA tax audit is the way the government ?verifies the tax returns of Canadians to ensure that all taxes have been reported with accuracy and honesty. The CRA can also audit both GST and HST tax returns, personal income tax returns, excise taxes and the payroll documentation.

The consequence of anything going wrong on the tax returns would result in several penalties and that may include criminal prosecution. As per the CRA, an effective tax system of self-assessment could be realized through continuous inspection of individual and corporate tax returns. In the absence of a CRA tax audit, it feels that the tax system would be redundant and ineffective.

The one-on-one interaction with the CRA agent gives the opportunity for the taxpayers to get a personalized experience with the tax agency and it also creates a situation where the taxpayers need to deal with the tax agency on a subject that CRA agents have more experience and resources over taxpayers.

Experienced tax accountants are expert in their field and particularly in their working with the CRA while defending taxpayers from the tax agencies. In the case of a CRA tax audit, the tax accountants will work on behalf of the taxpayers to defend their tax returns to the CRA as they have access to the highest appeal levels. These experts will also be able to review the tax returns and the related documents of taxpayers for problem areas. They are adept at corresponding with the CRA on behalf of the taxpayers and also in scheduling and attending all CRA tax audit appointments.

The CRA can also issue a Notice of Reassessment if it feels that some taxpayers are not cleared to qualify for a credit or a deduction. The taxpayers can prepare a Notice of Objection through their accountants if they feel that the CRA has committed an error. This filing of the objection is the initial step in the process of getting a tax dispute resolved. The Notice of Objection has to be filed within a period of ninety days from the day the CRA mails its Notice of Assessment.

A tax audit is a complete analysis of the conditions pertaining to the tax returns which are submitted to the CRA by a taxpayer or a business. ?The impression that is projected by the very phrase, `tax audit?, brings to the mind anxious feelings even among those taxpayers whose tax documents may be in perfect order. A tax audit may can be a result of some irregularity in the tax returns or it may be as part of a casual sampling.

The CRA has the task of supervising the ?collection of taxes from both individuals and companies in Canada. Mostly, the Canada ?The tax returns are reviewed as a routine and minor errors may be corrected in collaboration with the taxpayer as part of the collection process involving a tax audit.

A few tax returns may be selected on a random basis for a tax audit as a part of the process of review. If this is the case, then normally there are no penal measures which are involved. The taxpayer has to simply present the copies of their tax returns which have been filed for the period in question along with any supporting documents. These documents are presented to a representative of the CRA.

A Tax audit may also become necessary if the CRA feels that there is a sufficient reason to believe that a tax payer’s deductions are not allowed. The CRA may feel that there has been a deliberate attempt to conceal income. ?In such a situation, the CRA will call for a tax audit to sort out the discrepancies. If the taxpayer comes out with sufficient proof that the initial tax returns submitted were correct and in order, then the CRA will accept the arguments. When the CRA feels that a tax deduction cannot be allowed, the tax return will be calculated once again and interest penalties could be applied to the taxpayer.

Even though a tax audit may be a routine procedure for the CRA, it could be an anxious phase in a taxpayer?s life. It could be a nerve racking moment for a taxpayer when he or she receives a letter from the CRA informing that their tax returns have to be audited. Many taxpayers are ?believe that the CRA may not know when they conceal their income, but the CRA has ways of finding out more about the Canadian taxpayers. They retain the information that is initially provided to them by the taxpayers and they can also gather additional information about a taxpayer from third parties that include financial institutions.

To avoid a tax audit, it is wiser on the taxpayer?s part to file his or her tax returns by the deadlines which apply. If money is due to the government, regardless of whether a taxpayer can afford to pay the taxes or not, it becomes a criminal offense not to file the tax returns. If the taxpayers wait around till the time they feel they can afford to pay their taxes, they may discover that the penalties for filing late may make it more difficult for them to do so.

For tax audit help, it is important to make sure that you have someone who is experienced and specialized in CRA tax audits. Call Tax SOS’ experienced tax team at 1-877-982-9767.

Paying tax on any income earned is a legal requirement for individuals and businesses. There can be severe consequences for those who avoid paying their tax dues. There are proper taxation authorities for every country that deal with the payment and collection of taxes. For instance, the Canadian Revenue Agency is responsible for dealing with the taxation matters of the individuals and corporations in Canada. Therefore, it can be nerve-wracking for anyone to receive an audit notice from the CRA. No matter how carefully the returns are prepared, it?s difficult to imagine that an audit letter from CRA is anything but bad news.

What does a CRA tax audit entail?

Basically, a CRA tax audit involves a detailed investigation of the tax obligations of a party, which can be a business, individual or any organization. The purpose of the audit is to discover if the party has intentionally attempted to evade payment of taxes and whether it owes additional taxes or not. It is not very difficult to neglect making payments or mentioning all income on the federal tax return because some taxes are self-reported. A CRA tax audit is performed on businesses and individuals that are suspected of such negligence and for determining whether this ignorance is deliberate or an honest mistake.

Get professional CRA tax audit help

When an audit notice is received, individuals and businesses usually seek CRA tax audit help from experienced tax consultants. The consultants should be aware of the auditing process and what it involves. A team of skilled fact-finders and tax accountants is sent to help taxpayers that?s suspect of evading or underpaying taxes and they have the responsibility of sifting through the accounts and records of the party to determine the amount of tax that?s due. The auditors have complete knowledge of the different tax codes due to which it?s easy for them to figure out any discrepancies in the tax owed and paid. The final owed amount is usually determined by the auditor and this means that the party might have to pay more.

CRA tax audit targets

The CRA tax audit notice is typically received by those businesses and individuals that are suspected by the government for evading tax. They most likely owe additional taxes to the government. It?s usually large businesses and wealthy individuals that are suspected of paying lesser than owed taxes and they might need tax audit help for avoiding being subject to this process. However, the CRA tax audit can also be performed on random parties as the government doesn’t need any proof for carrying it out. There is no guarantee that a tax audit can be avoided completely.

When people seek CRA tax audit help, they will be told that some steps can be taken for avoiding a full-blown audit. Sometimes audits can also be resolved by mail and all the taxpayers need to do is to provide the tax auditors with the proper documents. A complete audit can be avoided in the future by reporting all the income earned on the proper forms and filing tax returns on time. Any cash payments and tips that have been received should also be reported even when there are no official documents. This CRA tax audit help from experienced tax consultants can prevent future auditing procedures for the business or individual.

You can not afford to delay and call for help as soon as you receive the CRA tax audit notice. Do not speak to CRA tax auditor to reduce the change that the information you volunteered will be used against you. Call Tax SOS right away for a free consultation at 1-877-982-9767.

As Canadian, you need to follow a voluntary tax system for income tax filing. ?This return is requested by the CRA annually.?It is commonly referred as the annual taxation or tax return.

CRA receive and handle the tax returns and provide taxpayers with notice of assessment. One of the most essential portion of this system is a requirement for the taxpayer to maintain the records which may be required in order to substantiate the tax filed.

Why CRA do the tax audit

The CRA or the Canada Revenue Agency is responsible to handle more than 25 millions of individual returns as well as corporate returns every year. Their prime jobs are to process these returns and to verify and assess the returns. Most of the time, CRA also looks for something abnormal in comparison to past tax returns filed by taxpayers.?Each year about one or two percent of the returns are chosen for the annual audit.

CRA can re-assess the tax return or known as CRA tax audit:

• In case of fraud or the misrepresentation, the CRA may reassess the tax return without time limitation.
• CRA can reassess the tax return at any time within four years after the first reassessment is sent.

The CRA can conduct desk audit where they may ask you for submitting the required documents that are related to the tax returns. CRA may also visit the business place of taxpayer in order to examine the records. This is also known as the field audit.

Apart from this the CRA has the authority to inspect and audit the books and the records that belongs to the taxpayers. They can even enter into the business premise to conduct the audit. If they find any resistance, CRA may issue a demand letter for submitting the information or the records.

CRA tax audit outcomes

The CRA auditors are also responsible to issue proposal of the tax audits. They have to compare the result with the original record for tax return. If they are sure that the original record for tax return have ?some errors, they may send the proposal letter. This proposal letter often includes suggestion to change the original tax return submitted and also asks the taxpayer to provide further proof. The proposal letter also includes a deadline to submit the required information. Generally, the CRA use to offer a 15 to 30 days deadline for collecting the information from the taxpayer.

From a taxpayer perspective, he or she is required to make some attempts in order to come to the resolution with the auditors from CRA. Usually, a settlement with the CRA officers can be done. However, it is important for you to know that dealing with CRA tax audit requires expert advice.

If CRA are not satisfied with the new information submitted by the taxpayers, then they may issue the reassessment letter.

The notice of reassessment means that CRA believe that there is an amount owing along with the interest.