A letter from the Canada Revenue Agency can make anyone nervous. But not every CRA notice is bad news, and most of them are routine. The key is knowing what you are looking at and responding correctly.

Step 1: Read the notice carefully

CRA sends different types of correspondence, and each one means something different:

  • Notice of Assessment (NOA): This is sent after CRA processes your return. It confirms your reported income, deductions, credits, and your refund or balance owing. Check it against your filed return. If everything matches, no action needed.
  • Notice of Reassessment: CRA has changed something on your return. This could be a correction to a math error, a disallowed deduction, or the result of a review. Compare it line by line to your original NOA.
  • Request for Information: CRA wants documents to support something you claimed, like receipts for charitable donations, medical expenses, or business expenses.
  • Review Letter: CRA is reviewing a specific area of your return. They want documentation.
  • Collections Notice: You owe money and CRA wants payment.

Step 2: Check the deadline

Most CRA requests have a response deadline, typically 30 days. If you miss it, CRA may reassess your return based on the information they have, which usually means disallowing the deduction or credit in question. Mark the deadline and do not let it pass.

Step 3: Do NOT ignore it

This is the biggest mistake people make. Ignoring a CRA notice does not make it go away. If CRA asks for documents and you do not respond, they will reassess your return and you will owe the difference plus interest. If it is a collections notice, CRA has broad powers to garnish wages, freeze bank accounts, and place liens on property.

Step 4: Do NOT call CRA without preparing first

If you call CRA to discuss the notice, know your file before you call. Have your SIN, the notice, your filed return, and any supporting documents in front of you. Anything you say on the phone is noted on your file. Do not volunteer information beyond what is asked.

Step 5: Gather your documents

If CRA is asking for receipts, records, or explanations, pull together exactly what they asked for. Organize it clearly. Label each document. If you are missing something, explain what happened and provide whatever you do have. A partial response is better than no response.

Step 6: Respond in writing

Even if you call CRA, follow up in writing. Use CRA’s My Account portal to submit documents or send a letter referencing the notice, your SIN, and the tax year in question. Keep copies of everything you send.

Step 7: Know your rights

If CRA reassesses your return and you disagree, you have 90 days from the date of the reassessment to file a Notice of Objection. This is a formal process handled by CRA’s Appeals Division, which is separate from the auditor who reassessed you. Do not miss the 90-day window.

When to get help

If the notice involves a business audit, a reassessment of more than a small amount, or anything you do not understand, talk to a CPA before responding. A professional can review the notice, prepare the response, and communicate with CRA on your behalf using an authorization (Form T1013).

L&R Accounting handles CRA correspondence and audit support for individuals and businesses across Ontario. If you have received a notice and are not sure what to do, bring it to us.

Geetha Srinivasan, CPA (Ontario), CPA (US)
L&R Accounting Services Ltd.