A letter from the Canada Revenue Agency can make anyone nervous. The good news: most CRA contact is routine. A review usually just means the CRA wants to see receipts or slips that support something you claimed. Handled properly, it rarely turns into a problem. Ignored, it can turn into a tax bill.
Step 1: Make sure it’s really the CRA
Scammers impersonate the CRA by phone, email, text and even mail. Before you reply to anything, check it.
- Sign in to CRA My Account yourself. Go to canada.ca in your browser and sign in from there, rather than clicking a link in a message. Real CRA letters are usually also posted in your account.
- Know the red flags. The CRA will not demand payment by gift cards, prepaid credit cards, cryptocurrency or Interac e-Transfer, and it will not threaten you with arrest.
- Emails from the CRA don’t contain links asking you to sign in or enter personal information. They simply tell you there’s new mail in your account.
If you think you’ve been targeted, report it to the Canadian Anti-Fraud Centre.
Step 2: Read the letter carefully
Note three things: what the CRA is asking for, which tax year it relates to, and the deadline to respond. Common requests include receipts for medical expenses, childcare, tuition, donations, moving expenses or rental and self-employment expenses.
Step 3: Respond on time, even if you need more time
If you can’t gather everything by the deadline, call the number on the letter and ask for an extension. The CRA can often give you more time. What you shouldn’t do is stay silent: if you don’t reply, the CRA may disallow your claim and you could end up with a balance owing, plus interest.
Step 4: Send organized, complete documents
- Upload documents through My Account where possible, so you have a record of what you sent and when.
- Include a short cover note that lists each document and the amount it supports.
- Send exactly what was asked for. Extra paperwork can raise new questions.
Step 5: Check the result
After a review, the CRA will either confirm your claim or send a notice of reassessment. If you disagree with a reassessment, you generally have a limited time to file a formal objection, so don’t sit on it.
Keep your records for six years
The CRA can usually ask for supporting documents for several years after a return is filed. Keep receipts, slips and statements for at least six years, and keep digital copies somewhere safe.
When to bring in help
If the letter mentions an audit, a large amount, several years, or anything you don’t understand, get help before you reply. A tax professional can be authorized as your representative, deal with the CRA for you, and make sure your response is complete the first time.
Got a CRA letter right now? See our plans and pricing or contact Wealth Street Services. We’re in Brampton and serve clients across Canada.
Members of our Personal and Family Accountant plans get help with CRA letters included.
Sources
- CRA: How to verify the CRA has contacted you
- CRA: Not sure the CRA is calling? Here’s how to find out
- CRA: How to tell you’ve been contacted by the CRA
This article is general information, not tax or financial advice. Rules and amounts change, so confirm details with the Canada Revenue Agency or speak with our team about your situation.
