What to do if you make a mistake on your Canadian tax return

It’s always a satisfying moment when you hit the Submit button and file your Canadian income tax return electronically, unless it’s one of those moments when you later realize you’ve made a mistake and shouldn’t have hit Submit. the button so fast.

You found a few more receipts or used the wrong class when you were calculating your cost of capital allowance, for example. Or you used the wrong dates for your medical deductions.

If you make a mistake on your tax return, don’t panic. The Canada Revenue Agency (CRA) will not rush to your house and will take you into tax custody. Instead, they have a procedure for you to follow so you can change your tax return after you file it and correct the mistake you made.

First, wait for your evaluation notification to arrive because there is nothing you can do until it arrives. Once you have it, you can request changes to your return in several ways, depending on whether it is a T1 (individual) return or a T2 (corporate) return.

Request to change your T1

If you are requesting a change to a T1 income tax return, you can do so online or by mail in one of three ways:

  1. Use the change my refund option found in My Account, one of the CRA’s secure online services. You must sign in to My Account.
  2. Submit a completed T1 Adjustment Request Form (T1-ADJ) to your tax center.
  3. Send a signed letter to your tax center requesting an adjustment to your return.

If you are requesting a change by mail, you must be sure to include all supporting documents related to the changes you are requesting, including your original income tax assessment if you have not already submitted it to the CRA. . You must also submit:

  • details of your application, including tax years, returns to be changed;
  • your social security number;
  • your adress; Y
  • a phone number where you can be reached during the day.

Online or by mail, you can request a change to any return from the previous nine years, as well as request a change to your current year tax return.

If you are requesting changes to tax returns for different years, you must prepare separate forms or letters for each change and submit the change requests for each year separately.

T1 response time

Once the CRA has reviewed your change request on your T1 form, they will let you know whether or not they will allow the change by sending you a reassessment notice showing the changes they have made to your tax return or a letter explaining why not. made the changes you requested.

Wait two weeks if you requested a change online or eight weeks if you requested a change by mail, according to the CRA website.

The CRA advises that it may take longer to process your application if it needs to contact you for more information or documentation, or if you submit your application to make a change to your income tax return in the spring or early summer.

Request to change your T2

As is the case with a T1 return, you cannot change your T2 tax return after filing until your corporation receives your assessment notice. Once that happens, requests to make changes to Canadian corporate income tax returns can also be made electronically or by mail.

Apply electronically using Canadian commercial tax software or by submitting your amended T2 income tax return in barcode format to the CRA. You can also write a letter and mail it to the appropriate tax center. Make sure your letter includes:

  • the name of the corporation;
  • the business number of the corporation (BN);
  • the fiscal year of the corporation; Y
  • any applicable details, including revised financial statements and revised schedules.

If the change you wish to make involves requesting that a tax loss or credit be transferred to a prior tax year, you must submit any of the following schedules:

Past years

How long you can go back to change T2 forms depends on the type of corporation you have and the type of reassessment being requested. those of the CRA The normal reassessment period for a T2 return is within three years from the date you mailed the original assessment notice for the fiscal year if the corporation was a Canadian Controlled Private Corporation (CCPC) at the end of the tax year. fiscal year or within four years of the date you mailed the original assessment notice for the fiscal year if the corporation was not a CCPC. However, extensions are possible.

Once the CRA has received your request to re-evaluate your corporate income tax return, it will review your request and then either send you a re-evaluation notice showing the changes it has made to your income tax return or a letter explaining why he didn’t. make the changes you requested.

T2 response time

It’s hard to say how long the process will take; The CRA does not publish specific timelines for reexaminations of T2 tax returns. The timeframe for reevaluation depends on the type of reevaluation you are requesting, whether your request needs further review or whether the CRA needs to contact you or your authorized representative for more information or documentation, and whether you submitted your request in late summer. or fall, which lengthens the process.

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