DO you have Income Tax Problems?

How returns are selected for review
There are a number of reasons why a tax return may be selected for review under the Pre-Assessment Review, Processing Review or Matching programs:
random selection;
comparison of information to third-party information sources, such as T4 information slips; or
types of deductions or credits claimed and an individual's review history (Were you selected for review in a previous year? If so, was there an adjustment made to the claim that was reviewed?).
Types of reviews
Review programs promote client education by identifying common areas of misunderstanding. Analysis of results and feedback from clients are used to review and improve the guides and forms the CRA provides to the public. Three of our review programs are the Pre-assessment Review Program, the Processing Review Program, and the Matching Program.
Pre-assessment Review ProgramUnder this program, we review various deductions and credits on returns before we issue the Notice of Assessment and if there is one, the refund. The peak period for this type of review is February to July.
Processing Review ProgramThis program is similar to the Pre-assessment Review Program except the review takes place after we have issued the Notice of Assessment. The peak period for this type of review is June to November.
Matching ProgramThis review also takes place after the Notice of Assessment has been sent. However, under this program, we compare the information on an individual's tax return to the information provided by third-party sources, such as employers.
For example, the amount of income an individual reported on his or her tax return can be compared to the employment income shown on T4 slips that the individual's employer has filed with the CRA or to the investment income shown on T5 slips.
The Matching Program provides support for other important programs such as the Canada Child Tax Benefit, the GST/HST credit, and the Guaranteed Income Supplement by correcting the net income reported by individuals.
Also, the Matching Program corrects errors relating to an individual's RRSP deduction limit and spousal-related claims, including child-care expenses, provincial tax credits, and provincial tax reductions. The peak period for this type of review is September to March.
Beneficial Client AdjustmentsThe Matching Program administers the Beneficial Client Adjustments Initiative, which supports the Minister's 7-Point Plan For Fairness.
Currently, this initiative identifies under-claimed credits relating to tax deducted at source or Canada Pension Plan contributions by comparing an individual's return to third-party information. We adjust the return to allow the amount the individual is entitled to, then issue a Notice of Reassessment and if it applies, a refund.