What To Do If You Get a CRA Notice of Reassessment

The CRA can reassess your taxes. Here’s what to do if you receive a CRA Notice of Reassessment

Fill out the form to get started or give us call

1-888-868-1400

Solve Your Tax Problem

Book A Free Confidential Consultation

 

How to Respond to a Notice of Reassessment


You are responsible for providing correct information to the Canada Revenue Agency (CRA) when you file your tax returns. When the CRA completes its review of your submitted tax filing, it will send you a Notice of Assessment.

However, the CRA can go back four years to look at – and possibly reassess – past returns. If the CRA suspects fraud, it can and will go back farther. This means that the CRA can go back and conduct an audit on your returns within this four-year period (and possibly beyond).

After this audit, the CRA will send you a Notice of Reassessment, which will replace the Notice of Assessment. You will also receive a Notice of Reassessment if your return has been adjusted through the Beneficial Client Adjustment Initiative.

Under this initiative, the CRA will compare the information that you provided on your return with the information submitted by third parties (such as your employer or bank). If you have failed to report your income accurately on your tax return, your Notice of Reassessment will list the corrected numbers along with the taxes and applicable interest owing.

 

What Should You Do if you Receive a Notice of Reassessment

 

If you receive a Notice of Reassessment, you can choose to accept the reassessment and pay the amount listed as owning. Of course, depending on your situation, this could be very large amount. If you don’t have the funds available to pay the CRA in full right away, interest charges will continue to add up, making it even more expensive to pay off the debt.

If you are in this situation, you’ll want to speak with tax professionals before you begin any negotiations with the CRA, including agreeing to a payment plan.

However, if you disagree with the reassessment, you have 90 days to follow a Notice of Objection. It is best that you file this objection with the support and advice of a trusted tax professional, as dealing with the CRA can be complicated and confusing. You’ll want to make sure that you do everything right.

When you file your objection, you will need to provide supporting documentation to prove that the numbers on the Notice of Reassessment are inaccurate.

Once the Notice of Objection is received, the CRA will review your case and it may attempt to negotiate an acceptable solution with you. If this happens, you will certainly want to have a trusted tax professional on your side. CRA negotiators are very tough and very experienced. The most successful negotiations are done with the assistance of professionals.

If you are in this situation, please contact us today by calling 1-888-868-1400. Our team can help you navigate the situation and ensure your greatest chances of success.

Contact Farber Tax Solutions
1-888-868-1400
Book A Free Consultation

Service Overall rating: ★★★★★ 5 based on 14 reviews
5 1

Toronto, Ontario

★★★★★
5 5 1
A CRA policy shift suddenly left me unqualified for a six figure tax credit my company qualified for in the past. I was left with an unexpected, and personal, six figure tax bill with no way to pay it. When the CRA’s patience wore out, they were about to freeze my bank accounts. I fight fear with information and did a ton of homework. It made sense to me that having someone from the CRA, an expat if you will, would be the best advocate for me at the CRA. A tax lawyer made no sense at all. Pick a fight with the CRA? You’re kidding right? So, I called TSC and spoke with James Bell. He bought the time necessary from the CRA so I could sell some assets at their full value to put things in order. That time saved me tens of thousands of dollars and I paid the CRA in full. At a time when I had no credit, James was good enough to extend terms for his services and I paid him too. I never had difficulty contacting James or his assistant once the wheels started turning, and they kept me fully informed along the way so I could sleep. I highly recommend TSC as a valuable service for those that live outside the tidy financial boxes the Banks and the CRA want us to live in.

Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our ex-CRA professionals to:

  • 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue
  • 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute processes
  • 3| Offer a complete solution to tax problems, including ex-CRA professionals, lawyers, and experienced accountants