First Richvale Corp. Prepares Ontarians for Post-Filing CRA Reviews and Audit Readiness

LONDON, ONTARIO, CANADA, April 15, 2025 /EINPresswire.com/ -- With the majority of Ontario residents finalizing their 2024 tax filings this month, First Richvale Corp. (FRC) draws attention to the potential for post-filing reviews or audits initiated by the Canada Revenue Agency (CRA). FRC recommends that individuals and businesses take proactive steps in April to ensure documentation is complete and accessible in the event of a CRA follow-up.

The CRA conducts several types of post-filing reviews, including pre-assessment reviews, processing reviews, and full audits. Pre-assessment reviews may occur shortly after filing, particularly where high-value claims are submitted. Processing reviews typically begin in the months following the filing deadline and may focus on specific credits, such as medical expenses or tuition.

FRC advises taxpayers to retain all supporting documentation for claims made on their returns, including receipts, invoices, contracts, and payment confirmations. Incomplete records can delay assessments or result in the denial of deductions. Electronic or physical copies should be stored securely and made available promptly if requested by the CRA.

Certain tax filings are more likely to trigger review. These include claims for employment expenses, large charitable donations, and unusual fluctuations in income or deductions year-over-year. Taxpayers with complex returns or significant changes from prior years may be selected for further review.

Businesses that issued T4 or T4A slips should ensure records match submitted summaries. The CRA often compares reported slips with amounts filed on employer remittance statements. Discrepancies can lead to payroll audits or demands for additional clarification.

FRC also highlights the importance of matching RRSP and TFSA contributions to official CRA records. Overcontributions can trigger penalties and may prompt inquiries from CRA auditors if limits are exceeded. Cross-checking contribution room on the Notice of Assessment is a critical step prior to filing.
In cases where an individual receives a CRA review letter, prompt response is recommended. Taxpayers should provide the requested documentation by the specified deadline. Extensions may be granted in some cases but should be requested in writing. Delayed or incomplete responses can escalate matters to a full audit.

CRA audit timelines can extend several months, depending on complexity. Audits may include interviews, review of bank statements, and in-person meetings. FRC suggests maintaining clear records and documenting business or employment-related expenses in detail throughout the year.

For self-employed individuals and small business owners, audit risk increases where expenses are unusually high relative to income. Vehicle logs, home office calculations, and meal expenses are frequently examined. Organizing these records during April helps prevent last-minute information gathering if selected for review.

FRC further notes that digital review processes have expanded. The CRA now accepts most documents electronically through secure portals. Ensuring that digital files are organized and labeled appropriately may streamline interactions with the agency.

If a taxpayer believes a CRA review decision is incorrect, a Notice of Objection can be filed. FRC encourages individuals to understand their appeal rights and consult appropriate resources or tax professionals to challenge rulings where warranted.

Ultimately, First Richvale Corp. emphasizes that audit readiness is a key component of responsible tax filing. April provides an ideal time to review return submissions, confirm accuracy, and prepare relevant supporting documents to respond efficiently to any CRA inquiries.

About First Richvale Corp.:
First Richvale Corp. is a London, Ontario-based firm offering personal and business tax preparation services. The company supports clients with CRA compliance, audit preparedness, and tax review management to ensure accurate reporting and minimize risk of disputes.

Jelena Kaidanova
First Richvale Corp.
+ +1 519-900-0797
email us here
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