Got a Letter from the CRA? Here’s What to Do (and What Not to Do)
A CRA envelope makes every business owner’s stomach drop. Take a breath — most letters are routine, and how you respond matters more than the letter itself.
Don’t panic — but don’t ignore it
Ignoring a CRA letter is the worst move; deadlines pass and the situation escalates. But panicking and firing off a reply without advice is almost as risky.
Know what you’re dealing with
It could be a simple review (they want backup for a claim), an audit (a deeper look), or a reassessment (they’ve changed your return). Each is handled differently, and the wording tells a CPA a lot.
What to actually do
Read it carefully, note the deadline, gather your documents — and get a CPA involved before you respond. What you say (and don’t say) shapes the outcome. If the issue is unfiled returns or unreported income, a Voluntary Disclosure may reduce penalties if you act first.
FAQ
Can I ignore a CRA letter? No — deadlines matter and ignoring it escalates things fast.
Should I respond to the CRA myself? Better to have a CPA review first; what you say shapes the outcome.
What’s the difference between a review and an audit? A review verifies specific claims; an audit is a deeper examination.
What if I haven’t filed or under-reported? A Voluntary Disclosure before the CRA contacts you can reduce penalties.
