Back Taxes: Normal Reassessment Period
Normal Reassessment Period
After the taxpayer files his/her tax return, you should receive a notice of assessment. This notice of assessment will have a date on it. This date is important. The time limit for CRA to audit your tax return is as follows:
- tax returns can be reassessed three years from the date on the notice of assessment;
- the reassessment period can be extended if the taxpayer has committed fraud or a misrepresentation on the tax return. If this is the situation, CRA can review returns as far back as they like.
- the three year reassessment period can be ignored, if the taxpayer signs a waiver that allows CRA to audit beyond the three year limit.
CRA needs to complete the audit within the three year period not just start the audit. So file your tax return as soon as possible to get the reassessment time clock started. Most tax returns are statute barred after three years; hence CRA can’t audit unless one of the prior reasons are present. If a waiver is requested by CRA, think twice before signing it. You may want to make the waiver specific to a particular issue.
If you receive a notice of reassessment, it is highly recommended that you acquire professional accounting assistance in order to protect your best interests against CRA. The professional accountants at Tax Doctors Canada will ensure that you receive the best possible outcome against CRA. We have decades of experience and success representing our clients against CRA reassessment actions.We would welcome the opportunity to be of service to you.
Do not hesitate any longer, call toll free at 1 855 TAX DOCS (855 829 3627) or use our convenient contact web form on this page for a free initial no obligation consultation for your personal and business back tax requirements. The professional accountants at Tax Doctors Canada can negotiate a settlement for you with the tax department and possibly save you interest, penalties and prosecution. There are Tax Doctors Canada locations in Mississauga, Toronto and Markham to serve you.
Contact us using the web form below or call toll free at 1 855 TAX DOCS (855 829 3627) for a a free initial no obligation phone consultation. We have convenient locations in Mississauga, Toronto and Markham to serve you.