First, Identify Exactly What the CRA Sent You
CRA correspondence can relate to a routine assessment, a request for supporting documents, a reassessment, an audit, an unpaid balance, an objection, or another compliance issue.
Do not respond based only on the envelope, heading, or amount shown at the top. Read the complete document and identify what the CRA is actually asking you to do.
- Confirm the Taxpayer or Account: Check whether the letter relates to you personally, a corporation, GST/HST, payroll, or another account.
- Confirm the Tax Year or Reporting Period: Make sure you know exactly which period is under review.
- Identify the Issue: Determine which income, deduction, credit, account balance, filing, or transaction the CRA is questioning.
- Find the Deadline: Use the response date stated in the actual correspondence.
- Find the Reference or Case Number: Use it when submitting documents or communicating with the CRA.
- Read the Requested Action: Determine whether the CRA wants documents, payment, clarification, a return, or another specific response.
If the notice is connected with older missing returns, review How to Catch Up on Unfiled Tax Returns in BC .
Common Types of CRA Correspondence
Different documents have different purposes. Treat the title and instructions on the actual document as more important than a general label such as “CRA notice.”
| CRA Document | What It Generally Means | Typical Next Step |
|---|---|---|
| Notice of Assessment | Shows how the CRA assessed a filed return and identifies resulting balances or changes. | Review the assessment and compare it with the return filed. |
| Notice of Reassessment | Shows that the CRA changed a previously assessed return. | Review the explanation of changes and determine whether you agree. |
| Review / Verification Letter | Requests documents or information supporting an amount reported on a return. | Respond within the time frame shown in the letter and include the requested records. |
| Audit Letter | Advises that specified books, records, transactions, or tax issues are being examined. | Identify the scope and prepare the records specifically requested. |
| Collections Correspondence | Relates to an assessed amount that remains unpaid. | Review the debt, payment history, and CRA contact instructions. |
| Requirement to Pay | A collection mechanism that can require a third party holding or owing money to a taxpayer to redirect funds to the CRA. | Treat it as a collection action, not merely as a routine reminder letter. |
How to Read the Notice Before Responding
CRA correspondence does not always use the same layout, so avoid relying on one assumed location for critical information.
Look throughout the document for:
- Date of the notice or letter
- Tax year or reporting period
- Account or program involved
- Case or reference number
- Explanation of changes or reason for contact
- Documents or information requested
- Balance owing or refund information where applicable
- Response deadline
- Contact or submission instructions
- Objection or appeal information where applicable
Do Not Assume Every CRA Response Deadline Is 30 Days
CRA review and verification letters can have different response periods. The correct deadline is the one stated in the specific letter you received.
When the CRA requests supporting information through one of its review programs, its current guidance tells taxpayers to reply within the time frame indicated in the letter.
If you cannot obtain the requested records before the stated date, contact the CRA using the information on the letter and ask whether additional time is available. Do not assume an extension has been granted until it is confirmed.
Practical rule: Record the deadline as soon as you receive the notice and work backward from that date.
Gather Only the Records Relevant to the CRA Request
Once the issue is clear, gather records that directly support the amount or transaction under review.
Depending on the notice, this might include:
- Receipts and supplier invoices
- Bank statements
- Credit-card statements
- Sales invoices
- Contracts
- Payroll information
- GST/HST records
- Vehicle logs
- Capital asset invoices
- Bookkeeping reports
- General ledger details
- Previous tax returns or assessments
Organize the response so each requested item can be matched to the supporting document. Avoid sending a large unexplained document dump when a smaller, clearly indexed response answers the CRA's request.
Use the Correct CRA Submission Method
CRA review programs may allow taxpayers or authorized representatives to submit scanned supporting documents through secure online services.
When submitting documents electronically, use the case or reference number shown on the CRA correspondence so the records can be matched with the correct review.
Keep copies of what was submitted and retain any confirmation or reference number generated by the submission.
If You Agree With the Assessment or Reassessment
If the CRA's adjustment is correct, determine whether the change creates tax owing, affects a refund, changes a carryforward balance, or has another consequence.
If an amount is payable, paying sooner generally reduces the period over which interest can continue to accumulate.
If you cannot pay the balance in full, filing and responding should not necessarily be postponed while you wait to save the full amount. Payment options can be reviewed separately.
If You Disagree With a CRA Assessment
Start by understanding exactly why the CRA changed the return. Sometimes the issue can be resolved by providing missing information or correcting a misunderstanding.
If the issue remains unresolved and you disagree with an assessment or reassessment, a formal Notice of Objection may be available.
The objection should explain why you disagree and provide the relevant facts and supporting documents.
Notice of Objection Deadlines Depend on the Taxpayer
Do not apply one universal 90-day deadline to every income-tax objection.
For corporations, the income-tax objection deadline is generally 90 days from the date of the notice of assessment or determination.
For an individual other than a trust, CRA guidance generally provides the later of:
- One year after the filing deadline for the return; or
- 90 days from the date of the applicable notice of assessment or determination.
Other assessments and tax programs can have different objection rules, so confirm the deadline applicable to the specific notice.
If an objection deadline was missed, an application for an extension may be possible in qualifying circumstances, but additional requirements and time limits apply.
Objection and Appeal Are Different Stages
A Notice of Objection asks the CRA's Appeals function to review the disputed assessment or determination.
If the objection process does not resolve the dispute, further appeal rights may be available, including an appeal to the Tax Court of Canada in appropriate cases.
The procedural route depends on the type of tax matter, so significant disputes may require specialized tax or legal advice.
When Professional Representation May Help
Not every CRA letter requires professional representation. A straightforward request for one missing document may be manageable directly.
Professional assistance may be more useful when:
- Several tax years are involved.
- Business bookkeeping is incomplete.
- The CRA is reviewing significant business expenses.
- Shareholder transactions are involved.
- Payroll or GST/HST amounts are in dispute.
- A formal audit has begun.
- An assessment involves a substantial balance.
- A Notice of Objection may be required.
- You do not understand the accounting records being requested.
An authorized representative can assist with communication and document preparation within the scope of their authorization and professional services.
For related support, see CRA Audit Assistance .
If You Owe but Cannot Pay the Full CRA Balance
If the assessed balance is correct but you cannot pay it immediately, the CRA provides options to discuss paying the debt over time.
A payment arrangement may be set up online in eligible circumstances or by contacting the CRA.
A payment arrangement does not normally eliminate interest. Interest can continue until the balance is paid.
You also need to continue filing future returns and meeting the terms of the arrangement. If agreed payments are not maintained, the CRA may proceed with collection action.
| Situation | Possible Action |
|---|---|
| Can Pay in Full | Use an accepted CRA payment method and verify the payment is applied to the correct account. |
| Need Time to Pay | Review whether a payment arrangement can be established. |
| Existing Collections Officer | Use the contact information in the collections correspondence. |
| Cannot Meet Existing Arrangement | Contact the CRA before simply paying less than the agreed amount. |
A CRA Letter Does Not Automatically Eliminate Every VDP Option
The Voluntary Disclosures Program changed effective October 1, 2025.
Under the current framework, the CRA recognizes both unprompted and certain prompted applications. A taxpayer who received some CRA communication about potential non-compliance may therefore still be eligible in circumstances covered by the current program.
However, an application is not considered voluntary when an audit or investigation has already been initiated against the taxpayer or a related taxpayer regarding the information being disclosed.
VDP relief is case-specific. Qualifying applications can receive penalty relief and partial interest relief, but taxes owing still have to be paid.
Keep a Clear Record of CRA Communications
Maintain your own record whenever you communicate with the CRA.
- Date and time of communication
- Name or identifying information of the CRA contact where provided
- Reference or case number
- What was discussed
- Documents requested
- Any deadline or next step discussed
- Confirmation numbers for submitted documents
If the issue is complex and you are unsure what a request means, ask for clarification before making assumptions about the accounting or tax treatment.
Verify Suspicious CRA Messages Before Responding
Not every message claiming to come from the CRA is legitimate. Be cautious when a message demands unusual forms of payment, asks for sensitive credentials, threatens immediate arrest, or directs you to unfamiliar links.
If you are uncertain, use official CRA channels or your authenticated CRA account to verify whether the communication is genuine before providing information or making a payment.
Reduce Future CRA Questions With Better Records
A CRA review cannot always be prevented. However, accurate and well-supported accounting records make it easier to respond when information is requested.
- Reconcile bank accounts regularly.
- Keep receipts and vendor invoices.
- Maintain clear sales records.
- Reconcile GST/HST and payroll accounts.
- Track shareholder transactions separately.
- Keep asset purchase and disposal records.
- Review CRA correspondence promptly.
- File required returns on time.
Frequently Asked Questions
Does receiving a CRA notice mean I am being audited?
No. CRA correspondence can relate to an assessment, reassessment, routine review, request for documents, collection matter, audit, or another issue. Read the document to determine what process is actually involved.
How long do I have to respond to a CRA review letter?
Use the time frame stated in the specific CRA letter. Review and verification requests do not all have one universal response period.
Do I always have exactly 90 days to object?
No. Corporations generally have 90 days for an income-tax objection, while qualifying individual income-tax objections generally use the later of 90 days from the assessment or one year after the return's filing deadline. Different tax matters can have different rules.
Can I ask the CRA for more time to provide documents?
If you cannot meet the stated response date, contact the CRA using the information on the letter and ask whether additional time can be provided. An extension should not be assumed until it is confirmed.
Will a CRA payment arrangement stop interest?
Generally no. Interest can continue on an unpaid balance while a payment arrangement is in place.
Does a payment arrangement guarantee that CRA will never take collection action?
No. The arrangement must be accepted and maintained. Future returns and obligations also need to remain current. If the arrangement is not followed, the CRA may proceed with collection action.
Can I use the VDP after receiving a CRA letter?
Possibly. Current VDP rules recognize certain prompted applications, so CRA contact does not automatically make every application ineligible. An audit or investigation involving the information being disclosed can affect eligibility.
Should I send every financial record I have?
Usually the better approach is to respond to the specific CRA request with organized supporting records that directly address the issue, unless the CRA has asked for a broader set of books and records.
CRA Notice and Tax Support Across British Columbia
Phoenix Knight Financial Services supports individuals and businesses with CRA correspondence, tax record organization, audit-related accounting support, tax preparation, and bookkeeping in Surrey and other communities across British Columbia.
