What is a notice of assessment and How to Handle a request for information
After you file your income tax return Revenue Canada (CRA) and Revenue Quebec (RQ) will send you an acknowledgement (somewhat like a report card) that the return has been received and a detailed breakdown of the tax return that was filed including any discrepancies. It also provides some information pertaining to future years such as limits and carryforwards. The NOA is also referred to as an “avis de cotisation” if your preferred language is French or when you receive one from RQ. Some of the information that can be found on a notice of assessment includes:
How to Stay on Top of Your Tax Obligations
As an accountant I frequently receive panicked calls from business owners who have received ominous letters from the tax authorities requesting that overdue tax returns be immediately filed. Others receive notices of assessments for estimated taxes payable if they have an overdue tax return. Revenue Quebec, particularly will often send corporations or individuals assessment for several thousand dollars to scare people into filing their returns. In more extreme circumstances, the tax authorities have the power to freeze your bank accounts or initiate tax audits. This can be debilitating to a small business.