You must read this article, to get detailed information on specifics governing CRA Notice of Reassessment: What is Notice of Reassessment and Why Did You Get It?
CRA Notice of Reassessment
A Notice of Reassessment will be sent to you by the Canada Revenue Agency (CRA) to notify you that your income has been reassessed. Receiving a notice of reassessment indicates that the CRA has examined your income tax returns again and found an issue that may require you to pay more taxes and penalties.
Three years from the date on your initial Notice of Assessment is the normal CRA reassessment timeframe. If the CRA’s conclusion seems reasonable, you should examine the reassessment’s foundation, ideally with the help of a tax expert.
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Further details regarding CRA Notice of Reassessment, factors governing its issuance, its importance and neccessary actions to be taken are all discussed in this article. So please stay hooked to this page for all the updated information.
What is Notice of Reassessment?
Taxpayers get a Notice of Assessment from the CRA following the submission of their tax return. If you have a zero balance, a refund, or you owe the CRA taxes, all of this information is shown in a Notice of Assessment.
A Notice of Reassessment could also be sent to taxpayers. If the CRA decides to examine your tax return or if it has made adjustments to your tax return, you should anticipate receiving a Notice of Reassessment.
Should you be chosen for an audit, the CRA will write to you seeking the data and records they need for the audit. The CRA will then examine your tax return using this information. The CRA will decide whether to evaluate the taxpayer or maintain the existing assessment after the audit is finished.
CRA Notice of Reassessment Overview
| Article | CRA Notice of Reassessment |
| Country | Canada |
| Issued By | Canada Revenue Agency or CRA |
| Time Period to raise Objection | 90 days |
| More Details are Available on | Canada.ca |
Why Did You Get It?
The CRA has three years to examine, audit, and perhaps reevaluate previously filed tax returns. In the event that the CRA chooses to audit one or more of your returns, they will notify you and might ask for more details or supporting documentation. In the event that the audit modifies your return, the CRA will send you a Notice of Reassessment in place of the original Notice of Assessment.
This indicates that the CRA denied a claim you had made or rectified any discrepancies based on a comparison of your tax return information with information submitted by third parties. This could result in money returned to your pocket at times, but more often than not, it indicates that you owe the CRA money, sometimes along with penalties and interest.
There are crucial deadlines that you need to be aware of if you have been given a Notice of Reassessment (NORA). A taxpayer has ninety days to send the CRA a Notice of Objection. If the taxpayer fails to submit the objection before the deadline, they may request an extension of time under the Income Tax Act.
CRA Notice of Reassessment Importance
Should the CRA require additional information on the information you provided on your tax return, or if they make changes to your return, you will receive a Notice of Reassessment. With the exception of the modified sections being highlighted, this document nearly perfectly resembles a NOA.
This letter should be reviewed as quickly as possible so that, in the event that you owe money, you can settle it without incurring additional interest or penalties. Not to mention, you have 90 days to reply if you believe the CRA made a mistake.
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What to Do After Receiving NORA?
You have ninety days from the date you receive the Notice of Reassessment to submit a Notice of Objection with the Appeals Division of the CRA, or you can accept the reassessment and pay the amount indicated as payable.
The process of assigning an Appeal’s Officer (AO) to your case after filing a Notice of Objection with the CRA may take some time. On the other hand, an AO will ask for more details and supporting documents to back up your filing stance after they are assigned to your file.
The process can get difficult, so you should first consult with a tax expert if you intend to accept the CRAS’s reassessment but lack the money to pay them in full right now. The CRA offers the option to work out a payment schedule.
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