Surviving a tax audit is very difficult for everyone, especially if one do not know what has to be done in that situation. It is best to talk to professionals of top Toronto CPA firms if you are going to have an audit soon and you are not prepared for it.
It is always better to be prepared than waiting for an audit to take place. So here are some tips for your help:
- Whenever you are going to be audited, you should give an assurance to the CRA that you have submitted records of all your revenue and credits, deductions and exceptions to the authority.
- Another way to survive an audit is to postpone the audit. Try to postpone as long as possible by requesting to the CRA that you would need more time to get all your accounts organized in a proper way.
- You should try to avoid the CRA auditors from auditing at your home or office. In its place, you should yourself head towards the CRA office and let the tax professionals handle your tax procedures. If in any case they want to have a field audit at your place, you must immediately consult tax planning Toronto agency, who can guide you better in this situation.
- You may also convince them that you might be missing some receipts and other documents, so that they can give you some time to restructure your records.
- Changing the amount of taxes that is to be paid can put you in dangerous situation. Instead of this, you may try to negotiate with the auditor in case any issues.
- In case of a field audit, you must not forget that you should not give any extra knowledge to the auditors than they are entitled to. Only answer the questions that are asked and avoid giving any explanation regarding your records and accounts.
- A detailed study on tax legal issues using free commercial tax guides online can prove to be very beneficial for you. It would help you in clearing all your doubt regarding tax audits.
- These were few helpful tips to avoid making mistakes while a tax audit. You may continue reading on this by finding more tax related articles from the internet.