Got a letter from the CRA? What to do next

Confirm the letter is genuine before acting

The CRA says it will not demand or pressure immediate payment by e-transfer, cryptocurrency, prepaid credit card or gift card, will not threaten arrest, deportation or prison, and will not ask for personal or financial information in a voicemail or email. A message that does any of these things is a scam, whatever logo it carries.

If you are unsure whether a call is real, the CRA’s advice is to end the call, find an official CRA phone number yourself and call back. Genuine CRA mail also appears in your CRA account, so signing in is a reliable way to confirm that a letter exists. Do not click links in unexpected texts or emails claiming to be from the CRA.

Identify what kind of letter it is

A notice of assessment or reassessment summarizes how your return was assessed, explains any changes the CRA made and shows whether you have a refund, a balance owing or a nil balance. A review letter asks for documents to support a specific claim. The CRA states that a review is not a tax audit; it is a check that the information on the return is correct. Other letters cover instalment reminders, benefit determinations and requests to file an outstanding return.

Read the whole letter, including the reference number, the deadline and the phone number printed on it. These details tell your accountant which program sent the letter and how to respond. Keep the letter with its original date; do not write on it or send only a photo of the first page.

Respond within the time frame in the letter

The CRA asks you to reply within the time frame shown in the letter. You or an authorized representative can send scanned documents through your CRA account, quoting the reference number from the letter, or mail them to the address given. If you need more time or cannot obtain a document, the CRA says to call the number on the letter before the deadline to discuss it.

Send exactly what is asked for, organized in the order the letter lists it, with a short cover note tying each document to the claim. Extra, unrelated documents slow the review and can raise new questions. Keep copies of everything you send and note the date.

If you do not respond, the CRA may make its decision without your information, which usually means the claim is disallowed and a reassessment is issued. Silence is the most expensive response.

Decide whether you agree with an assessment

If a notice contains an error or omission on your side, such as a missed slip or receipt, the usual route is to request an adjustment to the return rather than to dispute the assessment. If you disagree with how the CRA applied the rules, you can file a formal objection.

For individuals, the CRA’s deadline to object is the later of one year after the filing due date for the return or 90 days after the date on the notice of assessment or reassessment. If you miss it, you may apply for an extension for up to one year after that deadline, but an extension is not automatic. Interest continues to accrue on a disputed balance, so discuss whether to pay while the objection is considered.

Deal with a balance you cannot pay at once

If the letter shows a balance owing that you cannot pay in full, the CRA offers payment arrangements through your CRA account or by phone. The CRA expects you to make the first payment, keep to the schedule and file future returns on time, and it notes that benefit and credit payments may still be applied against the debt even while an arrangement is in place.

Where a penalty or interest arose from circumstances beyond your control, such as serious illness or a disaster, you can ask the CRA to cancel or waive it under the taxpayer relief provisions. Relief is discretionary and processing takes time, so ask for it in writing with supporting evidence and do not stop paying while you wait.