Dealing with CRA Letters, Reviews and Audits

A CRA letter usually asks you for something, like a receipt, an explanation, a payment or a missing return, and often gives a date to answer by. Write that date down, and make sure the letter really came from the CRA before you send anything.

The kinds of contact you might get

The CRA reviews about 3 million income tax returns a year to check that income, deductions and credits are reported correctly and can be backed up. A review is not an audit, the CRA says.

• Pre-assessment and processing reviews. The same kind of check, done before or after your notice of assessment is issued.
• Matching. After assessment, your return is compared with what employers, financial institutions and other third parties reported.
• Audit. A business audit is a close look at the books and records. The auditor usually phones first and follows up with a letter confirming the details. If the auditor decides the return needs changes, you have 30 days to respond to the written summary of findings.
• Collections. If you owe and get a letter from a collections officer, call the number on it as soon as you can. You can set up a payment arrangement by phone, or schedule pre-authorized debits in your CRA account (more in our answer on what to do with a notice of collection).

Checking it's really the CRA

Scammers often pretend to be the CRA. The CRA says it will not:

• send refunds or payments by e-transfer or text message
• demand immediate payment by Interac e-transfer, cryptocurrency, prepaid credit cards or gift cards
• threaten to arrest or deport you, or use aggressive language
• ask for personal or financial information in a voicemail or email

The real CRA does contact people by phone, letter, email and automated message, and it may ask for your name, date of birth or SIN to confirm who you are. If you're unsure about the phone number on a review letter, call 1-800-959-8281 to check it. If an audit call feels off, you can hang up and call the auditor or team leader back. Don't click links in texts or emails, even ones that look legitimate.

Answering on time

Reply within the timeframe in the letter, send everything it asks for, and make sure your copies are clear and easy to read. If you can't get a document or need more time, call the number on the letter before the date passes. If you don't reply at all, the CRA may adjust your return and disallow the claim.

Letting someone deal with the CRA for you

To have someone else handle it, you authorize them as your representative. On a personal tax account there are two levels: level 1 gives access to information only, and level 2 also lets them make certain account changes. Business accounts have a third level, delegated authority. There are three ways to set it up.

• In My Account. Go to Profile and select Add under Authorized representative(s). The CRA calls this the fastest way.
• Through Represent a Client. A representative with a RepID sends the request and you confirm it in My Account. You can also give them information from a notice of assessment for a return processed at least six months ago.
• By mail. Form AUT-01, Authorize a Representative for Offline Access, covers phone, mail, fax and in person, but not online access. Send it to the tax centre listed on the form within six months of signing it.

If you disagree with an assessment

A notice of objection gets you a formal, impartial review. For individuals, the deadline is the later of one year after that return's filing deadline or 90 days after the date on the notice. You can file online through "Register my formal dispute" in My Account, or mail or fax Form T400A to your Appeals Intake Centre. Explain why you disagree and include the relevant facts and documents.

In most cases you don't have to pay disputed income tax until the CRA has finished reviewing the objection. Interest still runs on an amount owing while it's in dispute, though, and the CRA notes you can pay some or all of it to avoid more interest. If you've missed the deadline, you can apply for an extension, up to a year after it. If the problem is only a missed slip or receipt, you can ask for an adjustment instead, as our post on changing a filed return explains.

Relief from penalties and interest

When something beyond your control kept you from meeting a tax obligation, the CRA can cancel or waive penalties and interest. The situations it lists include extraordinary circumstances (a flood or fire, serious illness or accident, a death in the immediate family), financial hardship, which applies to interest, and the CRA's own processing delays or errors. Penalties have to be for a tax year ending in the 10 calendar years before the year you ask, and only interest that built up in those 10 years is considered. You apply in My Account or on Form RC4288.

Expect to wait. When we checked in October 2026, the CRA's page said requests were taking about 16 months on average.

How we help

When you can't get anywhere with the CRA, this is the work we take on. With your authorization we speak to the CRA for you, answer their letters, and handle reviews and audits. We've been dealing with the CRA for more than 25 years, and we also catch people up on unfiled years.