What to Do When You Receive a CRA Review Letter

Receiving a CRA review letter can feel stressful, especially when the word “audit” appears in the heading. In many situations, however, a CRA review is not a full audit. Often, the CRA officer is asking for clarification or supporting documents for one specific item on a tax return.

The first step is to stay calm, read the entire letter carefully, and focus on what CRA is actually asking for.

Why the response deadline matters

The response date is one of the most important parts of the letter. Do not put the letter aside.

If CRA does not receive a response by the deadline, the officer may make a decision based on the information already available. That information may not fully support the taxpayer’s original filing position. Once CRA issues a decision without your response, it can become much harder to explain the facts or change the result.

Five practical steps to take

1. Keep your CRA contact information current

This should be done regularly, not only after receiving a CRA letter.

CRA may send correspondence by physical mail or electronically. If you use CRA online mail, you may receive an email notification when new correspondence is available. Individuals should keep their mailing address and email address current in CRA My Account. Business owners should also keep their business address and online-mail settings current in CRA My Business Account.

A missed CRA letter can lead to a missed deadline, and potentially interest or penalties if an amount becomes owing.

2. Read every page of the letter

Check the whole letter carefully, including small-print sections and attachments. Confirm:

• the tax year under review;
• the exact issue CRA is reviewing;
• the documents or explanations requested;
• the response deadline; and
• the officer’s contact information, if provided.

3. Contact the CRA officer early if anything is unclear

If the request is unclear, contact the officer as soon as possible. The officer’s name or phone number may appear in a small section of the letter, so review the entire letter carefully.

Before calling, have the letter, reference number, tax year, and your questions ready. If you need more time, ask before the deadline. Do not assume an extension has been granted unless CRA confirms it.

4. Protect the deadline

Put the response deadline in your calendar immediately and begin collecting the requested information. Even if you are waiting for clarification from CRA, continue preparing the response based on the information available.

5. Provide what CRA requested — not more than necessary

Focus on the specific information or documents requested in the letter. Providing unrelated or unnecessary information can sometimes create confusion or raise additional questions.

If you are unsure what should be included, consider asking a qualified tax professional to review the letter and the proposed response before submitting it.

Practical tip: keep records of contact attempts

In some cases, a CRA officer may not answer the phone or may not return calls after several messages. Continue preparing the response, but keep a record of each call and voicemail.

For example, a screenshot of your call history can help show that you made repeated efforts to contact the officer. However, attempted calls do not automatically extend the response deadline, so it is also important to keep proof that your response was submitted on time.

Final thought

A CRA review letter requires timely attention, but it does not always mean a serious audit. Read the letter carefully, understand the specific request, contact the officer early if needed, and protect the deadline.

If you are unsure how to respond, professional guidance can help you organize the requested information and avoid unnecessary mistakes.

FAQ

Is a CRA review letter the same as an audit?

No. A CRA review is often a request for supporting documents or clarification. An audit is usually broader and more formal, but both should be handled carefully.

What should I do first after receiving a CRA review letter?

Read the letter carefully, note the deadline, identify the tax year and issue, and gather the documents CRA requested before responding.

What documents might CRA ask for?

CRA may ask for receipts, invoices, bank records, donation slips, medical receipts, business records, payroll records, GST/HST support, or other documents related to the claim or filing.

What happens if I miss the CRA deadline?

CRA may deny the claim, reassess the return, or continue processing based on the information available. If more time is needed, it is usually better to communicate before the deadline.

Should I speak with a CPA before responding to CRA?

It can be helpful if the letter is unclear, the amount is significant, business records are involved, or the response could affect future filings.