A few weeks ago we talked about tax shelter reassessments – when the Canada Revenue, at first, allows a charitable donation deduction, but then reassesses that deduction and issues a tax debt – and one piece of advice we offered was to file an objection. Anytime you don’t agree with a CRA assessment, you have the option to object, but as we mentioned a few weeks ago, you only have 90 days from the date the reassessment is issued, to file that objection.
Since releasing that blog, we’ve received a number of calls regarding missing the deadline. If you’ve missed that 90-day deadline to request an extension from the CRA to file an objection, read on.
It is possible to extend the objection deadline, but you can only do so if you did not file your notice within the given timeframe due to circumstances beyond your control. Your extension application must be sent within one year after the objection period has expired.
When you apply for a CRA extension request, the aim is to demonstrate why you were unable to file an objection during the 90 day window. You must also explain why you were unable to have someone object on your behalf, that you did intend to object within the timeframe but were unable to do so, that it would be “just and equitable to extend the deadline,” and that you made the application to extend the objection period as soon as you were able.
A good rule of thumb when it comes to a CRA extension request is to send your Notice of Objection along with your application for an extension. This way it all gets in within the shortest time period possible.
If you’ve already missed that one year deadline, unfortunately, in most cases, you’re probably out of luck. While an extension may be granted if you’re within the year, waiting too long will likely result in a refusal.
One of the best ways to ensure the highest level of success when it comes to CRA extension requests is to work with a tax professional, one who knows the ins and outs of the system, and knows what the CRA is looking for.
If you’ve missed the 90-day objection deadline, you may still have time. Don’t delay. Call Tax Solutions Canada today to get your extension request started. 1-888-868-1400.