Few pieces of mail cause as much anxiety as an envelope from the CRA. In most cases the letter is a review, not an audit, and the distinction matters.
Review or audit
A review asks you to support something you claimed. It is narrow, it is common, and enormous numbers of them are sent every year. An audit is a broader examination of your records. Most letters people receive are reviews.
Why returns get selected
Selection is often routine rather than suspicious. Common reasons include a claim that is large relative to your income, a deduction claimed for the first time, information that does not match a slip the CRA already holds, or simple random selection. Being reviewed does not imply the CRA believes you did anything wrong.
How to respond
- Note the deadline. The letter states how long you have. Missing it usually means the claim is disallowed and the return reassessed, which is far more work to unwind than answering on time.
- Send exactly what is asked for. If they want receipts supporting your medical expenses, send those. Volunteering unrelated material invites unrelated questions.
- Make it easy to follow. Include the reference number, organise the documents in the order the letter lists them, and add a short covering summary if the claim needs explanation.
- Keep copies of everything you send, along with a note of the date.
If you cannot find the receipts
Say so, and provide the best alternative evidence you have, such as bank or credit card records, or a duplicate from the supplier. Silence guarantees the claim is denied. A partial response with an honest explanation sometimes does not.
If you disagree with the outcome
You can ask for an adjustment if you have further information. If you genuinely disagree with the CRA’s position, you can file a formal notice of objection, generally within 90 days of the date on the notice of reassessment. That deadline is firm, so do not let it pass while you decide.
You do not have to deal with it alone
With authorization on file, we can speak to the CRA on your behalf, work out what they are actually asking for, and put together a complete response. Clients who forward the letter to us promptly almost always have an easier time than those who set it aside for a few weeks. Send it over and we will take it from there.
A note on this article: tax rules and deadlines change. This article is general information, not advice for your specific situation - for that, talk to us.