What Does it Mean When the CRA audits you?

| Rebecca C Penner 

Find out what an audit by the Canada Revenue Agency entails and learn how to best prepare for and respond to an audit should one be initiated.

Contact Rebecca C Penner https://rcpenner.com/contact

If You Are Selected for a Tax Audit

If you are selected for a tax audit by the Canada Revenue Agency (CRA), it means that the CRA will be taking a closer look at your tax return to make sure that you have reported your income and expenses accurately. The CRA may also request additional documentation to support your claims. While it can be daunting to receive an audit notice, it is important to remember that an audit does not necessarily mean that you have done anything wrong. In most cases, audits are simply a routine part of the CRA's job to ensure that everyone is complying with Canada's tax laws. However, if the CRA discovers that you have underreported your income or claimed ineligible expenses, you may be required to pay additional taxes and penalties. If you are facing a CRA audit, it is best to seek professional help to ensure that you are complying with all of the relevant tax laws and regulations.

Click the link to read about CRA audits https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/changes-your-business/business-audits.html

When the Canada Revenue Agency (CRA) conducts an audit, it reviews the books and records of a taxpayer to ensure that they have been reported correctly. The CRA can ask for a variety of documents, including past tax returns, bank statements, invoices, receipts, and cancelled cheques. If you are under audit, it is important to be prepared and to cooperate fully with the CRA. Rebecca C Penner can help you with this daunting task. To help put your mind at ease contact Rebecca today! https://rcpenner.com/contact

Why You May Be Chosen for Audit

The CRA may choose to conduct an audit based on the frequency or likelihood of errors in tax returns, indications that you're non-compliant with paying taxes owed, and information not consistent with other similar files and/or investigations.

If you have any questions or concerns about an audit, please do not hesitate to contact Rebecca C Penner at https://rcpenner.com/contact

Rebecca will be more than happy to help guide you through the process and answer any questions you may have. Remember, it is always better to be safe than sorry when it comes to your taxes. Thanks for reading!

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Sincerely

Rebecca C Penner CPA, CGA