A post-assessment review is indeed not an audit, but it’s a common source of confusion for many taxpayers. Let’s clarify what it involves:
What is a Post-Assessment Review?
After you file your tax return, the Canada Revenue Agency (CRA) might select your return for a post-assessment review. This doesn’t mean there’s necessarily something wrong; it’s a routine check to ensure that the information provided is accurate and that you’re eligible for the claims you’ve made.
What Does it Review?
A post-assessment review typically focuses on specific items that are commonly claimed on tax returns, such as:
- Donations: Charitable contributions you’ve claimed.
- Medical expenses: Costs related to healthcare that you’ve deducted.
- Tuition transfers: Amounts transferred to you from a child or spouse for education credits.
- Federal foreign tax credit: Credit claimed for taxes paid to another country.
- Support payments: Alimony or child support payments that you’ve claimed as deductions.
How is it Different from an Audit?
While an audit is a comprehensive examination of your financial records and tax returns, a post-assessment review is more limited in scope. It focuses only on specific deductions or credits and is generally less invasive than an audit. The CRA may simply request supporting documents to verify the claims made on your tax return. If the information matches up, the review concludes without any further action.
Why Should You Care?
Understanding the nature of a post-assessment review helps you prepare adequately. Keeping organized records and receipts of your claims can make this process smoother. If you’re selected for a review, responding promptly and accurately with the required documentation can quickly resolve any questions raised by the CRA.
