Anyone else getting audited?

8890 Views 12 Replies 10 Participants Last post by martinv, Aug 24, 2009

Kathryn

Discussion Starter · Jul 29, 2009

It's our first time. The notice arrived today.

Fortunately I was organized enough to have all the paperwork to send back the same day.

They wanted all the receipts for charitable donations and my spouse's statement of tuition fees.

Will I hear anything back if it's all ok?

Anyone else get audited this year?

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stardancer

· #2 · Jul 29, 2009

IMO, that's not an audit, just a review. At my office, we spend most of the summer replying to these reviews. It's just a matter of faxing copies of the requested documentation.

I hope you didn't send originals, or at least you kept copies if you did. Never, never send anything to CRA without keeping either the original or the copy. Their letter usually has a fax number so you can fax the documentation.

You will receive a letter with their results. If you had the documentation, it won't take more than a few weeks.

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Kathryn

Discussion Starter · #3 · Jul 29, 2009

stardancer said:
IMO, that's not an audit, just a review. At my office, we spend most of the summer replying to these reviews. It's just a matter of faxing copies of the requested documentation.

I hope you didn't send originals, or at least you kept copies if you did. Never, never send anything to CRA without keeping either the original or the copy. Their letter usually has a fax number so you can fax the documentation.

You will receive a letter with their results. If you had the documentation, it won't take more than a few weeks.

Thanks for the reply. This does sound like it was more of a review. We sent originals but made colour copies of everything first. Hope that was ok!

Good to hear that we'll receive a letter with the results. Thanks!

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Andrew

· #4 · Jul 30, 2009

What Stardancer said is similar to my experience.

I have been reviewed twice. Both times on my tuition fees claims. All I did was send my calculations + supporting documents by mail and everything was fine. Received a letter from the CRA about 4-6 weeks later saying everything was fine and dandy.

Although it is annoying when you know your numbers are correct. I just hope they actually get the crooks through this process.

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martinv

· #5 · Jul 30, 2009

Yes, us as well. First time in our life which is a long time!
Medical Expense deductions were probably above a certain number where it is flagged. It said we have 30 days, so time to start gathering receipts.

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stephenheath

· #6 · Jul 30, 2009

I also have been asked for copies of my tuition statements twice, years 1 and 3 of my MBA. Faxed them the slips and everything was fine.

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WarrenC

· #7 · Jul 30, 2009

I'm waiting to get audited for the $50 of stuff I unloaded on eBay last year:

http://www.calgaryherald.com/business/Ottawa+sales+eBay+Canada/1845508/story.html

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CanadianCapitalist

· #8 · Jul 30, 2009

WarrenC said:
I'm waiting to get audited for the $50 of stuff I unloaded on eBay last year.

I know you probably said this tongue in cheek but you are not going to be audited for 50 bucks. But from what I understand, many eBay power sellers make hundreds of thousands of dollars in sales every year. Naturally, the Govt. wants its pound of flesh -- both the sales tax and income/business taxes. I think a crackdown like this is a good thing. We all pay our share of taxes; it is unfair if some get away without paying theirs.

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WarrenC

· #9 · Jul 30, 2009

CanadianCapitalist said:
I know you probably said this tongue in cheek but you are not going to be audited for 50 bucks. But from what I understand, many eBay power sellers make hundreds of thousands of dollars in sales every year. Naturally, the Govt. wants its pound of flesh -- both the sales tax and income/business taxes. I think a crackdown like this is a good thing. We all pay our share of taxes; it is unfair if some get away without paying theirs.

By all means, I hope people running a business of any type report their income and obey all laws. However the tone of the article suggests they are interested in everybody who sells anything. That could just be poor journalism.

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MoneyGal

· #10 · Jul 30, 2009 (Edited)

Capital gains and losses under $1000 do not need to be tracked or reported to CRA (with the possible exception of listed personal property). See this CRA circular or section 46(1) of the Income Tax Act. ("Personal use property" and "listed property" are both defined in s.54 of the Act.)

However, if you have a business which buys and/or sells property to create business revenue, it's all reportable.

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SavingMaster

· #11 · Aug 21, 2009

Chances are what you're describing isn't even a review but your return being kicked out of the stream because you've made a claim for something -- let's say your spouse's tuition -- and not included Schedule 11 and S11. Sometimes it can be fixed internally -- if the tuition amounts are carry-overs which are on the system or you included the receipt but not the schedules, but if the system can't determine how you calculated those credits or if you transferred credits to someone else, you get a letter from the Taxpayer Contact Unit requesting the schedules.

One of the biggest reasons why letters are sent out? Dates of birth. You would be surprised how many people get their own DOB wrong. Sometimes not a problem but for "critical years" (age 71 for example) and identification purposes it can generate a letter.

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Maltese

· #12 · Aug 22, 2009

martinv said:
Yes, us as well. First time in our life which is a long time!
Medical Expense deductions were probably above a certain number where it is flagged. It said we have 30 days, so time to start gathering receipts.

I have to send in receipts for my medical claims too. I'm not surprised because I had $18,000 in expenses and still $50,000 yet to come. My receipts didn't have all the info on them that Revenue Canada wants so I ran out yesterday getting more detailed receipts. I'll get everything in the mail this weekend after I've made photocopies for myself. It's odd though that they want original receipts if mailed but will accept faxed copies.

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martinv

· #13 · Aug 24, 2009

Maltese said:
I have to send in receipts for my medical claims too. I'm not surprised because I had $18,000 in expenses and still $50,000 yet to come.

Interesting, ours was $18,000 as well. It took a lot more effort than we realized. We had the receipts but many did not contain all the info CCRA wanted on them. In the end, we went back to the original issuer for more detailed versions. Something to keep in mind for the future.
Sent everything in but haven't received word from CCRA.
Will keep you posted.

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