When CRA sends you a letter

It’s that time of year again, when the letters from Canada Revenue Agency come out to verify deductions made on those tax returns that were filed last spring.  We got two this week, my son Kevan got one on Tuesday auditing his rent receipts.  Today’s mail brings one for my husband Brook, auditing our charitable donations and tuition transfers.

Many of my clients get in a panic when they get a letter from CRA.  It really is nothing to worry about though.  Since I have “represent a client” status for most of my clients (and of course my family), it’s a simple matter to upload a pdf of the requested information directly to the CRA website.  A couple weeks later a letter will come saying thanks for the receipts, no changes have occurred.  As part of my tax practice, I scan all tax slips, donation receipts and medical receipts for my clients.  If a letter should come, it’s a simple matter to pull the receipts from the scan, save as a separate pdf and upload.

Back to the family audits, I’ve pulled all the receipts and will upload this evening.  Just a minor inconvenience.  I’m actually excited we are being audited for our charitable donations.  A friend of mine says “When you give away so much that the CRA questions it, you’re doing it right”.