“People get very concerned, and sometimes rightfully so, about getting mail or requests or anything else from the CRA,” Grant-Young said.
Generally, he said, reviews aren’t serious if a taxpayer has claimed legitimate costs, followed the procedures and has the numbers correct.
In most cases, the CRA is looking for more information to verify the tax credits and benefits claimed, such as medical bills or receipts from moving expenses. This is different from a tax audit, which is a comprehensive review of your financial records.
Income Tax Guide for Canadians
Deadlines, tax tips and more
How to respond to a CRA review letter
Drouin suggested reading the letter carefully and gathering all the necessary supporting documents such as receipts, income or T-slips, or other proof linked to the claims.
Grant-Young said it is also important to put all the information in an accessible package so there’s no room for misinterpretation.
For example, if the CRA has asked you to back up your medical expense claims, gather up all the bills and prepare a page that tallies the costs to match the amount claimed on the tax filing.
If your final submission to the CRA is 20 pages long, Grant-Young suggests putting a summary page on top so the agency can review and cross-reference the documents easily.
These bills and documents “are very much just file support (for the CRA) because we don’t send all the information anymore” when filing taxes online, Grant-Young said. “That’s just not how the CRA online system works anymore.”
