Season’s Greetings CRA: Estimated 33,000 letters will be mailed out

'Tis the season and Canada Revenue Agency will once again send out an estimated 33,000 letters to Canadian taxpayers asking them to “reconsider” their prior year’s personal tax return. 

CRAs’ letter campaign, now in its’ sixth year, is focusing on the self-employed individual, rental properties and employment expense claims including form T2200.  The letters will come in one of two flavours.

One letter will outline the record keeping and reporting requirements of a specific claim the taxpayer has made on their return in a prior year.

The other letter will outline similar information but will also serve as a notice that the taxpayers’ return may be selected for audit and CRA may conduct an audit in their activity group.  This letter also suggests that the taxpayer may want to review their tax return and submit a “Request for adjustment and Voluntary Disclosure” in order to avoid potential penalties and interest costs.

As the letters will be going directly to the individual regardless of any tax services specialist authorization, practitioners are advised to take a pro-active approach on education of their clientele.