# Income Tax Audit



## newfoundlander61 (Feb 6, 2011)

Received an audit review for my charitable donations recently from revenue canada. This is the 3rd time in 8 years I have been audited for charitable donations. This past year I gave $6,752.00 and of course have all the receipts to account for this. Is there not a point when they would put a note on my file that this waste of my time and theirs is not needed due to the previous positive out comes. There's alot bigger fish to catch out there I am guessing than me and my charitable giving.


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## stardancer (Apr 26, 2009)

This is not really an audit, but a review. Eventually, after you can produce all the receipts for a number of years, they will stop. You can fax the receipts in with a copy of the letter that they sent; if you mail them, keep copies. I know of one senior lady who gives so much that she has carryovers each year; she is on a limited income, and each year the tax preparer faxes in the receipts, almost like clockwork.


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## newfoundlander61 (Feb 6, 2011)

Hi Stardancer, thanks for the post back. Yes "Review" is what it actually is, thanks for the helpful info.


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## omegacanuck (Jun 16, 2011)

Hopefully after time they will indeed move on to the next guy once they establish a good pattern with you. However, that being said, charitable donations are a very frequent area of abuse and fraud. A new scam comes up every couple years with them, so it's an area that they are always reviewing.


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## MoneyGal (Apr 24, 2009)

Hint for next year: just include copies of your charitable receipts with your return (this is assuming you paper-file your return).


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## Square Root (Jan 30, 2010)

i know the feeling. They have been reviewing our med expenses for several years. This year when putting together the package I found some receipts I forgot to claim. In the end we came ahead a couple hundred bucks. Serves them right.


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## Homerhomer (Oct 18, 2010)

Reviews for medical and donations are so common that if you have large amounts you may as well paper file and include receipts since the chance of CRA asking for it is very good.


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## Cal (Jun 17, 2009)

My Dad gets asked for documentation regarding his medical claims as well.

Although I do think that there used to be alot of 'charities' that would accept donations and issue reciepts in greater amounts. I believe this is what Revenue Canada is trying to clamp down on.


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## newfoundlander61 (Feb 6, 2011)

Thankyou all for the wonderful advice and information. I do efile but keep all my originals for several years which I will keep doing.


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## newfoundlander61 (Feb 6, 2011)

Got a letter back today from CRA, they politely said " we will allow the deductions", how nice of them. :encouragement: Mind you I knew this would happen but thats the way the system works, keeps the not so honest on a short leash.


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## Koala (Jan 27, 2012)

My husband got one too, except it was for our tuition receipts. We sent them in the same envelope, apparently they got mine, but not his. :hopelessness:


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## kcowan (Jul 1, 2010)

In my experience, every communication needs to have a single topic with CRA. Putting 2 things in an envelope or in a FAX almost guarantees that one of them will be overlooked.

(Besides FaxZero sends shorter FAXes for free anyway.)


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## sharbit (Apr 26, 2012)

newfoundlander61, this is kind of one of those things that you are doing that is a little ireggular so you get flagged. From what I've heard it's common for people to try to cheat on taxes for charitable donations. I've had seperate instances of friends talking about claiming they gave away a 5000$ painting to some organization or some other silly thing.

I paper file every year and just include all my "evidence" to simplify things.


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## Koala (Jan 27, 2012)

It was one letter from the CRA asking for the receipts, so we thought it would be ok. I'll keep that in mind for the future though kcowan, thanks!


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## fraser (May 15, 2010)

I have had three audits. A 'box' audit, (where they look at everything) an auto expense audit, and a tax shelter review.

All three went well, CRA/ Revenue Canada were very easy to deal with. I do not mind these audits. Most are computer generated or are'projects'. It is the price of self reporting.


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