Amended T2 return (T2 adjustment request)

A buyer or seller meets this when diligence shows that a prior-year T2 return does not match the financial statements. The CRA says a corporation may request changes to an assessed T2 return if it needs to correct amounts or forgot to include information. A reassessment can change the tax owing, including interest and penalties, or the refund. See what to do if the financials do not match the tax returns.

How the request is made

The CRA calls the process requesting a reassessment and says doing it electronically is the fastest way. It also accepts bar codes from the return, or a letter to the tax centre that names the corporation, its business number and the tax year, with supporting documents such as revised financial statements. Loss and credit carrybacks use specific schedules.

What to ask

• Whether the corporation has filed a request for any year, and what the CRA’s response says
• Which tax years the change touches, and whether it moves tax owing, interest or penalties
• Whether the affected year is still open; the CRA says the normal reassessment period depends on whether the corporation was a CCPC at year end