October 02, 2018
Understanding CRA Reassessment Processing Time
When you first file your tax return, the CRA will review it and provide you with a Notice of Assessment. Typically, you will receive this notice within two weeks if you filed electronically or within about eight weeks (or more) if you mailed in paper copies of your tax return. However, if you file very close to or after the tax deadline, you could be waiting even longer for your Notice of Assessment.
Once the CRA conducts its initial assessment, it can go back and reassess your returns if it feels there is reason to do so. If the CRA does this, you will receive a Notice of Reassessment. This replaces your original assessment.
As for CRA reassessment processing time, the CRA has three years from the date on the original Notice of Assessment where it is legally allowed to reassess a tax return. However, the CRA can extend this time period and look at tax returns from even farther back if the agency suspects fraud, negligence, or carelessness.
Note that a reassessment does not necessarily mean that you will be audited, nor does it mean that the CRA considers you to have committed tax fraud. Taxes can be reassessed for a number of reasons. You could have made a mathematical mistake or inputted a number incorrectly. Or your employer could have filed its numbers incorrectly. One reason that the CRA reassesses returns is if an employee’s numbers do not match the numbers provided by an employer. For instance, consider a situation where you state that you earned a certain salary and your employer’s documents list another number.
What Can You Do If You Are Reassessed?
If your tax return is reassessed during the CRA reassessment processing time period and you agree with the reassessment, you can pay the taxes listed on the document and the case will be closed. However, the outstanding tax debt may be quite large and you may not be able to pay it right away. This is especially true since a tax reassessment is often very unexpected.
If you cannot afford to pay the amount owing, you will be charged interest as long as you have an outstanding debt. This can get very expensive very quickly, so it’s important to speak with an experienced tax professional right away to get the situation under control. At Farber Tax Solutions, we can communicate effectively with the CRA to resolve your situation in the best way possible.
If you disagree with the reassessment, note that time factors other than CRA reassessment processing time come into play. You only have 90 days to file a Notice of Objection once you receive a reassessment. Objecting to the CRA is a complicated process and one where accuracy is crucial. Rather than rush to complete your objection on your own – and risk serious issues if you make a mistake – trust our team to help you. We can file a Notice of Objection on your behalf, giving you the best chance of success. Contact us today for more information on how we can help