Only 4 Planning Months Left in 2014

We hope you had a safe and enjoyable summer. The 2014 calendar year is quickly coming to a close. September is here, the summer has come to an end and the leaves are beginning to change colour. Change is inevitable, just like the weather. The best part about change is that it often is good, like the creative tax and financial planning services we offer our business and individual clients.

Contact us now to arrange your free, no-obligation, strictly confidential FinancialCHECKUP™. Since 1982, we have helped businesses and individuals across North America. Our Business and Tax Advisory Services will save you money and prevent costly mistakes.

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What Happens After Your Income Tax Return is Filed

We often hear from our clients the following question: What happens after my income tax return is filed?

Review by Canada Revenue Agency (CRA)

After you have filed your income tax return for the year, you may have to wait several weeks before receiving any word from CRA. During this period of time, the information on your tax return is being processed by CRA and your return is being reviewed.

If Your Tax Return is Assessed as Filed

If CRA’s review of your tax return indicates no errors, and if no additional information is required, you will be mailed a Notice of Assessment indicating that your tax has been assessed in accordance with how you filed your return. Normally, you will not need to worry anymore about that year’s taxes.

However, tax returns are accepted as filed by CRA with a more in-depth examination to follow later where, for one reason or another, the tax authorities think that some claim by you is not in order. Therefore, receiving an initial Notice of Assessment is just the first step in the process which might lead to a fight.

TAX TIP     While it is good to receive an initial positive Notice of Assessment, “closure” on the tax year, absent fraud, is still three years away. You should therefore make sure you keep a copy of your Notice of Assessment which you receive along with your other tax documents because the date on that notice may turn out to be crucial at some future date. Please contact us now for professional advice about your Notice of Assessment or Reassessment.

Generally speaking, CRA has three years from the date of mailing of your original Notice of Assessment to reassess a tax year, or at any later time if you sign a waiver of the three-year limit, or if CRA can prove fraud or misrepresentation in the tax return you filed. Misrepresentation may include neglect or carelessness as well as willful default.

If You Receive a Request for Further Information

The first word you will hear from CRA may be a request for further information. Such requests should be answered fully and promptly, and do not necessarily indicate that CRA will ask you for more money to pay tax. CRA has the power to enforce such requests if satisfactory answers are not given.

TAX TIP     If CRA feels there are errors or other adjustments required to your previously filed tax return, it will propose an adjustment to your return. If you feel that CRA has improperly assessed taxes, you should then consider whether or not to file a Notice of Objection. For strictly confidential advice on your specific income tax situation, please contact us now.

We Will Help You

Now more than ever you need our strategic tax consulting, comprehensive business advisory, and financial planning services. We also use the most advanced state-of-the-art technology to minimize your income tax liabilities.

To arrange your personal and confidential FinancialCHECKUP™, call now 905-709-HELP or email hhcacpa@rogers.com

Sincerely,

Howard Halpern CPA (CANADA), CA, LPA, CPA (USA), CFP, TEP

The material provided herein is believed to be accurate and reliable as of the date it is written. Tax laws are complex and are subject to frequent change. Professional advice should always be sought before implementing any tax planning arrangements. We cannot accept any liability for the tax consequences that may result from acting based on the contents thereof.