CRA saying I owe $4.5k, I submitted documents to prove I don't, still no response

[7thdayrest]

In 2020, I did an internship in the US and in July 2021, was asked to submit proof that "To support your claim for income tax paid to a foreign country".

Unfortunately I missed this mail completely and was sent a Notice of reassessment in December 2021 that I owed 4.5k. I quickly submitted documents to prove I paid income tax to the US via the MyCRA website. It's now been almost 3 months and I still haven't heard back on whether the documents were even looked at. My MyCRA portal still says I owe 4.5k.

I want to resolve this ASAP because I don't want it to affect my 2021 taxes that I plan to file soon but whenever I call the CRA line, it says "all circuits are busy" and hangs up. I've called at least 5 times and not once gotten to speak to anyone. What should I do?? This is driving me crazy.

 

[endtimeobserver]

@7thdayrest Some CRA document review requests are taking more than 3 months to process. As much as it sucks, at this stage your best bet is to call into the CRA at 1-800-959-8281 to see if the new documents are being reviewed.

 

[7thdayrest]

@endtimeobserver Okay I'll keep trying. Sucks that there isn't any progress bar in MyCRA or even a place to see the documents I had submitted. Luckily I saved a confirmation number elsewhere.

Do you think this will roll over and affect my 2021 taxes? For example if I'm supposed to get a refund of 1k, it will update to say I owe 3.5k? Or will I get the 1k and still owe 4.5k? I don't want it to rollover because I know for sure I didn't do anything wrong and don't actually owe the 4.5k and it would be a headache to then unravel 2 years of returns

 

[endtimeobserver]

@7thdayrest If the old $4.5k balance isn't cleared up before you file your 2021 taxes, then you likely won't get your refund. It will be applied to the 2020 balance to reduce it to $3.5k.

But, once the old $4.5k is cleared up, then your account will go back to a $1k refund.

 

[resjudicata]

@endtimeobserver I'm dealing with something similar and calling doesn't accomplish anything. The agents can't tell you anything about if or when it will be done. The one I have has been 8 months now.

 

[callmejames]

@resjudicata Same here! It’s so annoying, I want it dealt with.

 

[schel]

@resjudicata Hey, did it ever get resolved for you?

 

[resjudicata]

@schel Yes I think so. I can't remember what this was to be honest it was 2 years ago.

 

[wildcatsaborfang]

@7thdayrest I’m in the same boat, was reassessed and supplied all documents and proof of payment etc and I’ve been waiting since October. My accountant has been dealing with it for me. The CRA will take my tax refund if it’s not sorted before then.

 

[7thdayrest]

@wildcatsaborfang do you see anywhere in the CRA portal where you can look at your documents and the status of your reassessment? I can't find anything, almost like I never submitted anything which is a bit worrying

 

[ukkitty]

@7thdayrest Did you submit a Notice of Objection to the reassessment or did you just submit documents?

 

[7thdayrest]

@ukkitty I only submitted documents in the CRA website. The review letter I got said:

Submitting documents

Please send us only one reply and only use one of the methods below to send us your documents.
Your reply should include all the information and documents needed to support your claim. Make sure
that you write the reference number from this letter and your social insurance number on each page of
the documents you send us. Keep a copy of all documents you send us. We only return original
documents. We do not return photocopies or faxes, unless you ask us to do so.

You can send us your scanned documents online using My Account. To make sure the Processing
Review section receives them, enter the reference number (with no spaces) in the Case/Reference
number box on the Submit documents page. For more information, go to canada.ca/taxes-reviews
and select "Submitting documents electronically."

You can fax your reply to the Processing Review section at 819-536-7135.

This year, we encourage you to submit your documents online or send us a copy of your original
documents either by fax or by mail, to reduce impacts and delays due to COVID-19. You can keep
your original documents for your records.

Taxpayer information is confidential. If you want us to deal with a person as your representative, go to
canada.ca/taxes-representative-authorization for more information

Nothing about a Notice of Objection, I don't know what that is to be honest.

 

[ukkitty]

@7thdayrest You have the option to file a Notice of Objection. Your deadline to do so 90 days from the date of the reassessment with the option to seek an extension for 1 year after that date. If you haven't heard anything you may want to consider filing a Notice of Objection to preserve your objection rights.

That said, the objection process is also slow and it will take the matter out of the hands of the auditor you were assigned and into the hands of an objections officer.

The other thing to consider is trying to call the auditor who sent you the letter in July of 2021. Their letter may have a direct contact number.

Here's the form for filing an objection.

https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t400a/t400a-22e.pdf

 

[7thdayrest]

@ukkitty

it will take the matter out of the hands of the auditor you were assigned and into the hands of an objections officer

What are possible negative consequences of this I should think about before filing a Notice of Objection?

 

[ukkitty]

@7thdayrest Just timing. If your auditor is close to a conclusion, they will stop working on your matter. Objections has a huge backlog.

Do your best to get in contact with your auditor and see if you can resolve this. but if you can't, you may just as well file an objection.

 

[7thdayrest]

@ukkitty What are the benefits of filing one though? Someone else said the CRA will not collect while a Notice of Objection is under review, but I wasn't planning on paying anything to begin with.