A letter from the CRA is stressful, but most are routine. The key is to understand what kind of letter it is and respond by the date shown.
Common types of letters
- Processing review or request for documents: the CRA asks you to support specific claims, such as a deduction or credit.
- Notice of assessment or reassessment: shows the result of a return or a change to a previous one.
- Audit letter: a more detailed examination of your books, often covering several years.
- Penalty or balance notice.
Read the letter carefully. It normally states the tax year, the issue and the date by which you must reply.
First steps
- Do not ignore it. Missing the deadline can lead to the CRA making a decision without your information.
- Note the deadline and request an extension in writing if you need more time.
- Gather support for exactly what was asked: invoices, receipts, bank statements, contracts and mileage logs. Good bookkeeping makes this much easier, as our article on CRA record-keeping explains.
- Respond in the requested way, usually through My Account or My Business Account, or by mail. Keep a full copy of everything you send.
- Talk to your accountant before you reply, especially for audits, because what you say and send can affect later years.
If you disagree with an assessment
You generally have 90 days from the date on the notice of assessment to file a notice of objection. Individuals may have a longer period in some cases, so check the notice. If you miss the deadline, you may still be able to request an extension in limited circumstances. Interest can continue to accrue while you wait, so it helps to act quickly.
Reduce the risk of future letters
- Claim only what you can document.
- Keep personal and business spending separate.
- Report all income, including slips the CRA already has.
- File on time. See our guide to T2 deadlines and penalties.
- Make sure HST claims are supported by proper invoices.
Our CRA audit support team can review the letter, prepare your response and communicate with the CRA on your behalf.
This article is general information, not tax or legal advice. Deadlines depend on your notice, so always follow the dates on your letter.
Related service: learn how we can help.
