I just got a call from CRA about my SR&ED claim! Am I in trouble?
- There are two reasons why the CRA may call you about your SR&ED claim. If you are a first time claimant, you will almost certainly get a visit from CRA in what is called an FTCAS – First Time Claimant Advisory Service. This is simply an opportunity for CRA to educate your company about the SR&ED program.
- If the CRA is calling to audit your claim, DON”T PANIC! If you have a claim that is legitimately SR&ED and properly prepared, you should do just fine, although some CRA representatives are problematic and unpredictable. Even if the CRA doesn’t agree with you, you won’t be in trouble although they may want some of their money back.
- Proper preparation is the best defense. Sometimes they want to review your claim because they don’t understand the report, and the audit is a chance to clarify what you did. You also have the opportunity to learn how to best present your SR&ED next time. Sometimes it is just a periodic checkup. If you’ve not been reviewed in 5+ years, CRA may want to check in and touch base.