Many people panic when they receive a tax audit notification letter from the Canadian Revenue Agency
(CRA). However, a tax audit is not meant to intimidate taxpayers. It is a random process that is usually performed to investigate a filed return's accuracy. A tax firm is comprised of a group of tax professionals who handle the investigation of individuals’ and businesses' returns to clear up any discrepancies that may be found in them. Punitive measures are normally not involved when the taxpayer can produce copies of the filed returns along with the necessary documentation for the period cited. As long as their deductions and earnings can be supported with documentation, the audit can be completed without any further action.
There are cases during an audit investigation when the tax agency will conclude that the deductions on a taxpayer's return were not allowable, that earned income was deliberately hidden or that the taxpayer failed to file an annual return altogether. The Income Tax Act, under Section 238 and 239, specifically deals with tax evasion offenses, and persons found guilty can receive a monetary penalty and/or several month’s imprisonment. A tax audit can also prove problematic for individuals who have filed their returns late or have missing information on their tax returns. Canadians who have failed to file their returns by midnight on April 30th will be charged a penalty along with a percentage (interest) for the balance owed for the current year and for each full month that the return is late by the (CRA). If you would like to inform yourself further about potential tax issues and some of their solutions visit the Tax911 Now! website at tax911now.ca/unfiled-tax-returns-to-cra
Tax audits can be performed on an individual or on any size of business. Whether you are a property owner or running a small business it is important that you stay current with tax information and what you are required to keep on file in order to verify your claims. A professional tax firm
like Tax911 Now? offers experienced and current advice on audits and any other type of tax issue. They will inform you about your best course of action and will be with you every step of the way through an audit process. While a tax audit is considered to be routine process, certain tax problems such as tax evasion and filing a late return can be devastating for a taxpayer. Although there are certain consequences that the taxpayer needs to be prepared for when serious discrepancies are found on a return, seeking the help of a highly experienced tax firm can make the whole process of a tax audit less intimidating for them.
The worst thing that an individual or a business can do when they encounter complex tax issues is to ignore or try to handle their tax problems on their own when they find out that they are being audited. Click here to read more
about the options available to you at Tax911 Now! and avoid the financial burden of a bank levy, wage garnishment, penalties and possibly even imprisonment later on down the road. Having the guidance of tax professionals will give you peace of mind that you are handling your income tax issues in the best possible way.
Blog has been viewed (131) times.