Your client’s tax return is being reviewed—now what?

If CRA reviews your client’s tax return, you can help them avoid panicking with the following tips, courtesy of CRA.

First, your client should know that a review isn’t an audit.

In most cases, a review is simply “a routine check to ensure that the information you provided on your return is correct,” says CRA in a release, adding that it reviews about 3 million tax returns every year.

Your client will know their return is being reviewed because CRA will inform them of such by letter or phone.

“We’ll ask for information, receipts or documents to support a claim or deduction you made on your income tax return,” says the release.

Clients should respond to such requests within the timeframe CRA provides. More time may be granted if required by a responding client.

“If you don’t reply,” says CRA, “we may adjust your income tax return, and your claim or deduction might be disallowed.

CRA says clients should keep tax documents and receipts for at least six years from the return filing date.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.