CRA will soon be conducting the 7 th annual letter campaign. These campaigns are meant for the taxpayer to review their return to ensure it was filed accurately. If an adjustment is required, this letter provides the opportunity for the taxpayer to make this adjustment by filing a T1 Adjustment Request. However, if the claims made on your tax return were all accurate, no further action is required by the taxpayer.
Remember, receiving this letter from CRA does not mean you will be selected for an audit as CRA considers various different risk factors before conducting audits. In selecting returns for audits, CRA uses risk assessment systems and research to identify which taxpayers are more likely to misunderstand tax regulations and their tax obligations. Also, CRA will select tax returns at random to audit to ensure returns are being prepared accurately. If they identify a claim that numerous taxpayers are claiming inaccurately, they may start increasing the number of audits for taxpayers within similar claims.
Contact Cross & Company for personal income tax services & tax returns filing. If you have any questions or have received a letter from CRA and would like to discuss your return, please feel free to contact our office.