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.
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General information only. This article is for general educational purposes and does not replace advice for your specific tax situation. Receiving or responding to this information does not create a CPA-client relationship or engagement with OSA CPA Professional Corporation.