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How Far Back Can CRA Audit Personal Taxes: Understanding Your Options

Canadians must be aware of how far back the Canada Revenue Agency (CRA) can audit personal taxes. Dealing with the CRA can be intimidating, especially when it comes to audits. To make the process more manageable, we will explore several mediums to handle CRA inquiries regarding personal taxes, such as the CRA website, mobile app, and the call center. Let's get started!

Understanding CRA Audits

CRA auditing is a routine process through which the agency reviews a person's tax returns to ensure accuracy. Contrary to common belief, an audit doesn't always imply wrongdoing. Often, it's just a regular check to ensure your income and deductions are reported accurately. It is crucial to stay well-informed about how far the CRA can reach back in auditing personal taxes. Generally, the CRA review period for personal taxes extends back to three years. However, in cases where fraud is suspected or a person has not filed a return, this period could be extended even further.

Explore Your Options: The CRA Website

Understanding the audit process and its implications is indispensable. The CRA website is an excellent first point of contact for acquiring the needed information. On the website, users can navigate to the "CRA Audit" section. Here, you will find details about the audit process, reasons for selection, your rights during an audit, and the possible outcomes.

Also, by using the "My Account" option on the website, users can see their account information, including any audit or review activities. It's a way to stay informed about your personal tax situation from the comfort of your home.

Taking Advantage of The CRA Mobile App

If you prefer a more on-the-go approach, the CRA mobile app – MyCRA – is at your service. This user-friendly app allows you to view your tax information conveniently and quickly. You can also check your tax and benefit returns or carry out several other activities.

If CRA is auditing your personal taxes, the audit-related information will be displayed on the home screen, under an 'Alerts' label. Users can tap on the alert to get more details about the audit or follow the notification prompt to respond accordingly.

Engaging with the CRA Call Centre

If you feel more comfortable talking to a representative one-on-one, making use of the CRA call center is the way to go. All you need to do is dial the toll-free number and choose the appropriate option for personal taxes.

An operator will connect you to a tax advisor who can answer your questions about the audit. Do note that you may have to provide some personal information to verify your identity.

Concluding Thoughts

The CRA has the right to audit individuals as far back as is necessary, with the standard timeframe being three years. However, it's possible to handle this process efficiently and smoothly by utilizing the resources provided by the CRA. We hope that this article has been resourceful and will help you better understand and navigate a CRA personal tax audit.

Remember, staying informed and proactive is the key to having a successful and stress-free audit process. Don't hesitate to reach out to the CRA through their website, mobile app, or call centre whenever you might need additional support or clarity.

Disclaimer: This content is for informational purposes only. We recommend consulting a tax professional for more accurate advice.