CRA Letter Guide: How to Understand and Respond to a Notice from the CRA
Receiving a letter from the CRA can feel stressful, especially when the language is technical or the deadline is unclear. The most important thing to understand is that most CRA letters are manageable when handled promptly and with the right information.
This guide explains the most common types of CRA correspondence so you can understand what you are dealing with before deciding on next steps.
Notice of Assessment (NOA)
The Notice of Assessment is the CRA’s official confirmation that your tax return has been processed. It shows your total income, deductions, tax payable or refund, and your RRSP contribution room.
What to do: Review it carefully and compare it to what you filed. If the numbers match and you agree with the result, no action is required. Keep it for your records.
When to act: If the numbers are different from what you filed, contact your tax professional to review whether a correction or response is needed.
Notice of Reassessment
A Notice of Reassessment means the CRA has reviewed and changed your original assessment. The change may increase your tax balance, reduce your refund, or adjust a credit.
What to do: Read the explanation section carefully. The CRA must explain what was changed and why.
When to act: If you disagree with the change, you may have the option to provide documentation, request an adjustment, or file a Notice of Objection. There are deadlines for each option.
Review or Request for Information Letter
The CRA regularly reviews specific claims on tax returns. If you claimed a rental loss, home office deduction, moving expenses, medical expenses, or charitable donations, you may receive a letter asking for supporting documents.
What to do: Gather the receipts, invoices, and records that support the claim. Respond before the deadline stated in the letter.
When to act: Do not ignore these letters. Missing the deadline can result in the claim being denied and the balance being adjusted.
Collections Letter
If you have an outstanding balance with the CRA and it has not been resolved, you may receive a collections notice. These letters can escalate and the CRA has significant authority to collect.
What to do: Do not ignore it. Contact the CRA or a tax professional to understand the balance and your options. Payment arrangements may be possible.
When to act: Immediately. Collections matters can escalate quickly.
Audit Letter
A CRA audit involves a more detailed review of your tax return or business records. The letter will explain what years and items are being reviewed.
What to do: Do not respond to the CRA directly until you understand what is being requested. Organize your records related to the items under review.
When to act: Contact a tax professional before responding. What you say and how you respond can affect the outcome of the audit.
General Tips for Responding to CRA Letters
- Read the letter carefully and identify the type of notice
- Check the response deadline
- Gather documents related to the specific item mentioned
- Do not ignore any CRA letter regardless of how small the amount seems
- If the language is unclear or the amount is large, contact a tax professional before responding
When to Contact Proficiency Tax
Contact us when:
- The letter involves a balance owing you do not understand
- A claim has been denied or changed
- An audit has been initiated
- The deadline is approaching and you are not sure how to respond
- The letter is from Revenu Quebec and you need bilingual support
We review CRA letters, explain the issue clearly, and help prepare organized responses. Bilingual support is available for CRA and Revenu Quebec correspondence.