IRS Tax Processing Delays impacting audit on CRA Tax Credit

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
aed11
Posts: 16
Joined: Sat Apr 19, 2014 11:37 pm

IRS Tax Processing Delays impacting audit on CRA Tax Credit

Post by aed11 »

Interested in knowing if anyone else has had issues this year with being able to give supporting evidence for a CRA tax credit on taxes paid to US for US-based income? I was naturally audited on the tax credit (I had withdrawn my IRA) and when I requested an Account Transcript from the IRS it showed a negative balance (owing to me), as they had no record of my return yet. I mailed it in on the extended deadline in October (had to mail as husband does not have or want a TIN#), and I was worried it was lost in the mail until I read an article about how behind the IRS is in processing tax returns, and I read on their website that they are currently opening mail received in July. They specifically say not to call in to inquire on the status of your return (I did try calling a couple times before I read this and always got a message that the phone lines were too busy and to try again another time)
https://www.irs.gov/newsroom/irs-operat ... s-continue

So without the Account Transcript showing my taxes owing and paid, the CRA reassessed my return removing the US tax credit. I wrote back to explain the situation and hope that they will allow time for the US to catch up, but I may not receive a response before the deadline to pay. Unfortunately the US never actually tells you when they process a return, so I just have to keep requesting account transcripts on a regular basis. Would you recommend just paying the adjusted taxes and then re-filing after the account transcript is received. Or if I am confident in the tax credit is it just best to wait, and any interest will be removed once it is sorted out? Thanks!
B Stephens
Posts: 1
Joined: Mon Mar 29, 2021 1:05 pm

Re: IRS Tax Processing Delays impacting audit on CRA Tax Credit

Post by B Stephens »

Any update on your case? Had you e-filed your CRA return?
nelsona
Posts: 16947
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: IRS Tax Processing Delays impacting audit on CRA Tax Credit

Post by nelsona »

This is for last year. Poster filed his tax return six months after deadline.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
Post Reply