You wake up suddenly, in a cold sweat, realizing that in the rush to file your tax return early and claim that juicy refund, you forgot to include a donation slip you received late last month that you left on the piano in your hurried escape to pick the kids up from school.
To make a change to your return, the CRA advises that you wait until you receive your Notice of Assessment. There is an exception to this three year limitation period which gives the CRA the discretion, but not the obligation, to reduce or refund any tax payable after the three years have passed.
A bizarre case, decided earlier this year, involved a taxpayer who attempted to amend his and personal tax returns in , after the three-year limitation period had expired, whose request was turned down by the CRA. In order to process his amendments, the CRA requested that he provide further information, such as business records and bank statements, to support his income for those two years.
The taxpayer responded that in the years in question, he was a self-employed street vendor who sold flowers and all his transactions were in cash. He further testified that he did not have bank accounts because he had been a victim of identity theft, he did not keep various business records and that he lost some receipts when he moved from Ottawa to Toronto. The CRA denied his requests to amend the returns as he was unable to provide any evidence to substantiate his income for and Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
A welcome email is on its way. If you don't see it, please check your junk folder. Do not file a second tax return for the same tax year. This will ensure that CRA has processed the original return and can then process the adjustment without any confusion.
Once you have received your notice of assessment, file only a T1 adjustment for the changes you want to make. Do not file a second tax return. You are not required to submit receipts or slips if you file your T1 adjustment electronically, however, you may need to provide them if asked.
If you choose to submit your T1 Adjustment by mail, you are required to send in the receipts or slips to support your adjustment. You are able to ask for an adjustment to be made to a tax year ending in any of the 10 previous calendar years. For example in , you can adjust tax returns dating back to The reassessment will state any changes made or why changes were not allowed. If you are a Canadian Controlled Private Company CCPC , you can amend your corporate tax return within 3 years of the date of the original notice of assessment.
If you are not a CCPC, you can amend a tax return within 4 years of the original notice of assessment date. An additional 3 year extension is possible for certain situations including;. Before filing an Amended T2, wait until the Company has received the Notice of Assessment on the original return filed.
Online adjustments process in about two weeks. If you have more than one adjustment to make, try to have all of your information ready at once and do it all in one shot. You are allowed to make multiple adjustments all on one request. CRA allows taxpayers to adjust returns going back 10 years.
So gather those old receipts and claim the expenses before the ten-year deadline. Search for:. Share 5.
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