Help! I've got mail from the CRA!

It’s every business owner’s worst nightmare…picking up the mail and finding an envelope from the CRA. Despite being a small envelope, it weighs heavy as you take it home. Storm clouds begin to form and you fear the worst. 

Okay, let’s stop right there. Getting mail from the CRA does not have to be the beginning of a horror movie. 

Of course, it’s so much easier to feel confident about responding to the CRA when you have good advice on your side. That is why it is so important to make sure that you have access to a CPA (such as myself). We have dealt with issues similar to yours before and can definitely be the strong, strategic advice that you need in your corner. 

So let’s talk about four important things you should absolutely, 100% NOT do when you get mail from the CRA. 

Don’t ignore it…instead, read the letter!

This may sound like a no-brainer, but sometimes we avoid things that make us feel uncomfortable.  Before assuming the worst, make sure you carefully read any correspondence from the CRA. 

Sometimes it is something as simple as your login code for your online account or confirming that you have registered for HST.  There are many reasons why the CRA may be contacting you, so don’t assume that it’s because you owe money!

However, if their purpose in writing is to reassess you, they do give you a time period in which you can look into it and respond. It’s usually around 15 days from the date of the letter.

If that’s the case, contact your accountant IMMEDIATELY! While your case can be disputed after that deadline, it is much, much more difficult. It is much more complicated and it will drag out much, much longer than you want it to. 

Do yourself a favour and reach out to your accountant so that you can handle this situation calmly and smoothly. Your future self will thank you! 

Don’t miss it…instead, make sure the CRA can reach you! 

I sometimes have clients that receive an email or electronic mail on their CRA account that says “final letter”, and they had never received the initial letter!  That can definitely be jarring.

Usually, it boils down to a fairly common mistake: not letting the CRA know that you have moved. So if you have moved in the past year, make sure that your contact information is up to date with the CRA. 

As well, I always recommend that my client sign up for electronic mail with the CRA. That way you have instant access to any of the CRA’s communications (and you don’t have to worry about misplacing an important letter!)

Don’t Panic…instead, get your records in order.

While it may be a bit nerve-wracking to receive mail from the CRA, it’s actually incredibly common. In fact, the CRA sends thousands of notice of assessments each year to many small and medium businesses. 

If you receive a notice of reassessment, it is your responsibility to a) pay the amount owing; or b) prove that the CRA was incorrect and file an objection. 

To file an objection, you’ll need supporting documentation to prove that the CRA’s Notice of Reassessment was incorrect.  

This is where good recordkeeping is going to be your best friend. If you do not have a good recordkeeping system for your business finances, I strongly encourage you to get that set up. You can read more about how to do that here.

The more straightforward and organized proof you have, the greater your success will be. 

Don’t do it alone…instead, seek trustworthy advice. 

Dealing with the CRA can be intimidating and overwhelming, but the good news is that you don’t have to do it alone! The best advice we can give for handling any issue with the CRA is to speak to an accountant as soon as you can. 

Of course, you don’t want just any accountant. You want someone that can make this whole complicated process accessible. You want someone who has the skills to give you the right strategic approach to your problem. You want someone who will empower you. 

That is Jennifer Kapedani, CPA, CA.  Our team has the knowledge, skill and experience to assist you. We pride ourselves in providing excellent customer service and our passion for empowering business owners means that you can view the problem and solution clearly and confidently. 

Book a call if you want to learn more about how we make your taxes a bit less taxing.