Correcting Your Previous Years Taxes
In most cases once a person files their tax return, there is no way they want to change their minds about this and perform any corrections. A lot of people feel that if they do an amended tax return that they are instantly going to become a target of CRA scrutiny.
The first thing to remember is, if you are doing your taxes properly and in an honest way then you have nothing to fear concerning the CRA no matter how much they scrutinize your taxes. They can’t make you pay any more than what you actually owe.
There are many people that fill out their own tax returns year after year and could possibly be making a mistake that is costing them more tax dollars or not getting the benefits of some tax incentives that they are entitled to.
It is only when these individuals decide to have their taxes done by a professional that they suddenly discover that they have been making errors throughout the years that were not in their favor. The big decision then becomes whether they should file amended returns.
The decision should be based on the circumstances. If it was just a one time error and a correction would only make a small monetary difference, then it has to be decided whether doing a corrective tax return is worth the work.
On the other hand if it as an error that has accumulated over several years then even a small yearly amount could add up.
A common mistake that some seniors used to make was not claiming their rent reduction or credits. Over a period of years this could add up to a substantial amount, and may be well worth going back the ten years that the CRA allows.
Once the corrections are made and the amended returns are filed, then it is a matter of waiting for the notice of reassessments from the CRA. It will then be determined if there is to be any refunds based on this.
If it has been an accountant that has brought this error to your attention, then following the advice of this professional as to what corrective steps you should take would be advisable. These experts can help you with the amended returns.
It is for reasons such as this that a lot of people have now decided to utilize the services of a quality accountant. The tax returns are not getting any easier to complete, and now with electronic filing being the way to go for some it’s even more complicated.