A CRA letter is not a reason to panic
Opening an envelope from the Canada Revenue Agency, or seeing a new message in CRA My Account, can make anyone anxious. The good news is that many CRA letters are routine. They often ask for receipts to support a claim, point out a slip that wasn't included, or request more information before finalizing an assessment.
At Trehan & Company, we deal with the CRA for any review or audit for individuals, self-employed people and corporate clients, including GST, payroll and corporate income tax audits. We read the letter with you, explain what it means in plain language, gather what is needed and respond in an organized way.
The most important thing is not to ignore it. CRA letters have response dates, and replying on time with the right documents is usually the quickest way to resolve the matter and get back to your life or your business.
What we help with
Whatever kind of CRA contact you've received, we can help you understand it and respond.
Processing reviews
The CRA may ask you to send receipts or documents supporting credits and deductions on your personal return, such as medical expenses, tuition or childcare costs.
Matching letters
The CRA compares your return with slips and information from employers, financial institutions and others. If something doesn't match, we help you work out why.
GST audits
We help businesses and drivers gather sales records, invoices and input tax credit support when the CRA examines their GST returns.
Payroll audits
We help employers show how deductions were calculated, when remittances were made and how T4s reconcile with what was paid.
Corporate income tax audits
We work with corporations to organize financial records, explain the figures in the T2 return and respond to the auditor's questions.
Late or unfiled returns
If you are behind on filing, we help you gather what's needed and bring your returns up to date.
Reviews and audits: what's the difference?
A review usually focuses on a specific item. In a processing review or matching program, the CRA asks taxpayers to send supporting documents for particular claims, or to explain differences between their return and the information slips the CRA has received. Many reviews are settled once the right documents are sent.
An audit examines your records in more depth. It may cover a business's income and expenses, GST returns, payroll or corporate tax filings for one or more periods. Audits take more preparation, and having an accountant organize the records and communicate clearly with the auditor can make the process smoother.
- Review: targeted, often a request for receipts or slips
- Matching: the CRA compares your return with third-party information
- Audit: a deeper examination of books and records
- Each letter states the date the CRA expects a response
How we handle a CRA request
Our process is designed to take the stress out of dealing with the CRA.
- 1
Bring us the letter
Share the letter or notice and any related documents. We note the response date right away so nothing slips.
- 2
Authorize us to help
You can authorize us as your representative through the CRA's Represent a Client service, so we can view your account information and communicate with the CRA about your file.
- 3
Gather supporting documents
We tell you which receipts, statements and records are needed and help you organize them into a clear, complete package.
- 4
Respond to the CRA
We prepare the response, explain the figures and answer follow-up questions, keeping you informed at each stage.
- 5
Review the outcome
When the CRA issues its decision, we go through it with you. If you disagree, we explain your options, including a Notice of Objection.
Deadlines on CRA letters
Every CRA letter states a date by which the CRA expects a response. If that date passes without a reply, the CRA may finalize its review based on the information it already has, which can mean a claim is reduced or denied and a balance becomes owing.
If you need more time to gather documents, it's usually better to contact the CRA before the date than after. Bring the letter to us as soon as you receive it, and we'll help you plan a response that meets the deadline or, where needed, contact the CRA about timing.
Keep tax records and receipts for six years from the end of the tax year they relate to. Most review requests ask for documents you were already expected to keep, so good record-keeping is the best protection against a stressful CRA request.
Disagreeing with the CRA: the Notice of Objection
If the CRA assesses or reassesses your return and you believe its decision is wrong, you can file a Notice of Objection. You generally have 90 days from the date of the notice or, for individuals, one year from the filing deadline for that year, whichever is later.
An objection should explain clearly why you disagree and be backed by supporting documents. We help you understand the CRA's reasoning, decide whether an objection is worth pursuing and prepare a well-organized submission. In some cases, sending documents the CRA didn't have is enough to resolve a matter without a formal objection, and we'll tell you which route makes sense.
Behind on your returns?
If you have late or unfiled returns, the best step is usually to get them filed as soon as possible. When a balance is owing, the CRA's late-filing penalty is 5% of the balance owing plus 1% for each full month the return is late, up to 12 months, and interest is charged on unpaid balances.
Filing on time matters even if you can't pay, and filing keeps benefit and credit payments such as the Canada child benefit and the GST/HST credit flowing. We help you gather slips and records, prepare the outstanding returns and understand where you stand.
- Personal, self-employed and corporate returns
- Missing slips checked through CRA My Account
- A clear explanation of any balance owing
- Benefit and credit payments kept flowing
How to spot a CRA scam
Scammers often pretend to be the CRA, so it helps to know what the real CRA will never do.
The CRA will never
- Demand payment by gift cards
- Ask for prepaid cards
- Ask for cryptocurrency
- Threaten you with arrest
What to do instead
- Hang up or don't reply
- Don't click links in the message
- Check your CRA My Account
- Call us at (780) 439-0050