How a CPA Firm Can Help With the Canada Revenue Agency
Getting a letter or a call from the Canada Revenue Agency (CRA) can be intimidating, no matter who you are or what the circumstances may be. This is because the CRA has very strong and broad powers to collect taxes and even press legal charges. This can be very frightening, even if you have done nothing wrong.
Whether the CRA contacts you asking for additional documents, looking for more information, wanting to double check facts, or requesting an audit, it’s important to deal with these situations promptly and correctly. There could be serious financial repercussions (and even potential legal issues) if you do not give the CRA accurate information. A Chartered Professional Accountant can help you handle the CRA.
Communicating with the CRA is a lengthy and time-consuming process in the best of times. Tax law is confusing and complicated for those who are not completely familiar with it, forms and documents are lengthy and contain a lot of complex terms, and the CRA often moves very slowly. This means that you’re most likely going to spend a long time figuring out exactly what the CRA needs and going back and forth with the agency to resolve your issue.
A CPA firm has the experience and knowledge needed to effectively communicate with the CRA, resolve issues, and help settle any tax-related issues you may have with the CRA.
How a CPA Firm Helps You Avoid Tax Issues
Whether you have personal tax issues or corporate tax issues, trust an experienced CPA. A CPA will provide you with tax planning and advice that will save you money and help you avoid hassles. They will also give you all the information you need to ensure that you’re doing proper tax reporting, from maintaining the necessary records to submitting the required information to the CRA.
When you work with a CPA – either on personal or corporate taxes – you decrease the likelihood of a CRA audit, since you’ll be giving the CRA the information it needs. The agency will have fewer reasons to come looking for you if you’ve filed everything properly.
Plus, a CPA will be able to accurately identify potential red flags that could lead to an audit, and ensure that you’re prepared to correctly respond to the CRA if the agency comes calling.
Help with CRA Tax Audits
Hearing from the CRA that the agency wants to conduct an audit is certainly not a call you want to receive. CRA tax audits are lengthy and stressful, and they can be very costly. If the CRA decides that it wants to audit you, there isn’t much that you can do other than prepare yourself and go along with the audit. Ignoring the notice or trying to avoid it won’t work, and it could make your situation worse.
As soon as you receive an audit letter, you’ll want to speak with a professional. There is a lot of paperwork that you’ll need to collect, organize, and go through prior to a CRA audit and working with a CPA makes this process quicker and more effective. A CPA will work with you to make certain that all of the information you provide the CRA is accurate and received by the requested deadlines, streamlining the process and reducing your risk.
Not only can a CPA assist you with the organization of your information, but they can also respond to the CRA on your behalf. This doesn’t just save you the time and hassle of communicating with the CRA yourself, but it also ensures that an experienced professional is dealing with this complex situation.
Whether you’re dealing with an HST audit, a corporate tax audit, or a personal tax audit, a Chartered Professional Accountant gives you the best chance of the audit working out in your favour.
For more information on how a CPA can help you handle a CRA audit, please contact us today.
