The Canada Revenue Agency (CRA) will soon be conducting its seventh annual Office Audit Letter Campaign.

This campaign targets a specific group of taxpayers that have demonstrated specific tax behaviour. This year, CRA is targeting about 30,000 taxpayers who claim consecutive business or rental losses or who are employees claiming employment expenses on line 229 of their tax return. Each taxpayer will receive an “intent-to-audit” letter with information and guidance on their general tax obligations.

The goal is to encourage targeted taxpayers to review their taxes by accessing their account on-line through My Account. This way if they find errors, corrections can be made by submitting any required changes using Form T1-ADJ - T1 Adjustment Request (which is a paper form), or through the Voluntary Disclosures Program.

The CRA hopes to help individuals and small businesses better understand their tax obligations, which increases future voluntary compliance, protects the government’s tax base, and uses resources within the CRA more effectively.

If you or your clients have questions about the CRA’s Office Audit Letter Campaign or need help making changes to previously filed returns, give us a call at 905-580-2199. We'll walk you through any necessary steps to make sure you're in good standing with the CRA.