Objecting to CRA Assessments - What you Don't know

I love to share what I know with my clients, and anyone else who wants to listen.  I don’t take it personally if you have doubts about what I say.  Please question me.  Ask for clarification.  Ask me for legislative references.  If you call the CRA and get a different answer then what I gave you call me and get clarification.   NEVER EVER ASSUME (ass-u-me) THAT I AM WRONG !!!!!! 

Story Time!!!  I had a client (past tense, yes they left me) who asked me some very specific questions which I answered with as much detail as I thought was required.  I never tell all things I know, because most people don’t want to know every possible outcome.

So the problem is that the client called the CRA and asked the same question and got a different answer.  However, instead of meeting with me or even talking to me they took the CRA answer as being correct (and by default I was wrong).  I then got a nasty email saying how I was an idiot and that the CRA had told her I was wrong, and that there was nothing she could do as she missed the deadline.

When I read this I was pissed!  The client never gave me a chance to explain.  The client assumed the CRA was right and that I was wrong.  The problem is that “I WAS NOT WRONG”!  I WAS RIGHT!  Let me explain.  The client asked me about objecting to a reassessment.  The client asked me if there were time limits.  I told the client we had time and that given the circumstances we did not have to worry about the deadline.  The client did not know if they had the information required to support the objection, so I told them to see if they could get the documentation we needed.  (I did not want to charge them to do something if we had no hope of winning).  The client called the CRA to ask about the deadline and got a different answer as noted above.

Now for the details about objecting:

1. You have 90 days from the date of assessment or reassessment (whichever is later)
2. You can request an extension if you miss the 90 days (CRA almost always allow an extension)
3. The extension gives you up to 1 year from the date in point #1 above
4. If you miss these deadlines you can file a request for adjustment (you have 3 years from the assessed date to request an adjustment)
5. If the CRA denies the adjustment you can object within 90 days of the denial letter
6. You can request an extension of up to 1 year just like in point #2 and #3.

Let’s do the math shall we.  Under the worst case you can object almost 4 years after the initial return is filed.  That is not something the CRA are going to explain to you.  I don’t explain it all either unless we are into the time frame where the client needs to know.

The CRA did not tell her all this.  They said that you have 90 days to object and that if you miss that then there is nothing you can do except, accept the assessment.  Now as you can see there is more to it than the CRA was willing or able to tell the client.  Now I ask you who is wrong?  It sure as hell wasn’t me!!