You finished your taxes for the year, got them in on time, received your assessment and figure that’s the end of this for another year. Some people, don’t even bother to read their assessment, which could end up getting them into tax problems. Even if you sent in any tax that you determined that you owed with your tax return, your assessment could reveal that this was not correct and you owe more.
You want to review your assessment carefully to determine that it matches your income tax filing. This is your first step in handling any potential tax problems. There could be changes made because of an error in your calculations, or it could be something more significant than this. If you agree with the changes and they have resulted in you owing money to the tax department, then ideally you want to get this sent in as quickly as possible.
It may be that you don’t understand the reasons for any changes that have been made. In this case if you have an accountant who prepared your tax return for you then you need to discuss your assessment with them. If you did your own tax return then it might be beneficial to set up an appointment with a tax accountant who can explain what is taking place on your assessment. He can also assist you with the best way to handle this situation.
It may turn out that your accountant advises you that the assessment is correct according to tax regulations. If you find that you now owe money that you aren’t able to pay, your next step is to arrange for suitable payment. You can either do this yourself by contacting the CRA to make payment arrangements, or you can retain your accountant to contact them on your behalf. You will have to give permission to the CRA to speak to your accountant regarding your tax matter. Your tax expert will direct you on how to do this.
If it turns out that you feel that the CRA is not correct and your accountant supports this, then you can take further action. You have the right to file an objection to the assessment. This is the first formal step that you must take when there is a tax dispute. It has to be done properly and there is a time limit in which you are allowed to do this.
It can be very intimidating to have to deal with the CRA regarding a disputed tax issue, but by utilizing the services of a quality accountant to assist and guide you then you will feel more confident in taking the necessary steps to get the tax matter rectified.
