Most CRA contact about a personal return is a review, not an audit. A review is a request to prove a specific claim, usually a deduction or credit, and it often ends with a short letter. An audit is a deeper examination of your books, records and finances. The CRA itself says a review is not a tax audit.
Three things people call an audit
The CRA runs several review programs for individuals. Two come up most often, and they differ mainly in timing. A pre-assessment review happens before your notice of assessment is issued. A processing review happens after the notice has been issued. In both cases the CRA wants support for amounts you claimed, such as receipts for medical expenses, donations, moving costs or employment expenses.
There are others. The Request Verification Program looks at requested changes to a return before a reassessment. The Matching Program compares your return with information from third parties such as employers and financial institutions. If your slips say one thing and your return says another, expect a letter.
An audit is different in scale. The auditor examines books and records, documents and other information, which can include bank statements and personal financial records, and sometimes records of family members or related parties. Audits are more common for people with business or rental income, but nothing in the CRA material limits them to that group.
How the CRA contacts you
For a review, the CRA says it will first try to check your claim against the information it already has. If that isn’t enough, it contacts you or your authorized representative by telephone or in writing. A letter carries a reference number in the upper right corner, and you will need it when you reply.
For an audit, the CRA starts by mail or phone. Audits usually take place where your records are, whether that is your home, your representative’s office or, in some cases, a CRA office.
Keep your address current, because reviews are selected throughout the year and the letter goes to the address on file. If you will be away, you can authorize a representative in My Account or with Form AUT-01. Our CRA My Account guide covers signing in and checking your mail there. And if a call or message seems off, don’t share details on the spot. Hang up and call the number printed on a letter you know is real, or look at My Account.
What you may be asked for
The request depends on the claim. It is usually the paper behind the number on your return.
- Receipts and proof of payment for expenses you deducted or credited, such as medical, childcare, tuition or donations
- Bank or credit card statements and cancelled cheques that show the payment
- Slips and statements that support the income you reported
- Your copy of the return and earlier notices of assessment or reassessment
- For an audit, ledgers, invoices and other records of income and expenses
Send only what the letter asks for, and label each item so the reviewer can match it to the claim. If you have a credit you’re unsure about, our tax credits calculator can help you see what the claim was worth.
How long you have to respond
The letter sets the deadline, and it differs by program and by request. The CRA says to reply within the timeframe on the letter, to the address shown, with the reference number. If you need more time, call the number at the bottom of the letter before the date passes. Don’t wait until after.
You can send scanned documents online through My Account for Individuals or Represent a Client. Accepted formats include PDF, Word, Excel, JPEG and TIFF, and one submission can be up to 150 MB. You get a confirmation number and a reference number for later contact.
The CRA pages on reviews don’t spell out what happens automatically if you ignore a review letter. But a claim that can’t be supported can be disallowed, and that changes your tax owing. Answering is always cheaper than not answering.
Keeping records so you can answer
The CRA says to keep your tax documents and records for at least six years. For individuals, the period runs six years from the end of the last tax year the records relate to. So a receipt for 2026 is kept through the end of 2032.
Keep the receipts, statements and slips, a copy of each return, and each notice of assessment or reassessment. The CRA also refers to Information Circular IC78-10R5 for special cases such as an open objection or appeal or an unfiled return. If either applies to you, read that circular before throwing anything out. A scanned copy in a labelled folder is better than a shoebox, and it will cost you nothing.
Your rights
The Taxpayer Bill of Rights lists 16 rights that describe how the CRA must treat you. They include the right to privacy and confidentiality, to complete, accurate, clear and timely information, and to be treated courteously. You also have the right to make a service complaint and to get an explanation of the CRA’s findings.
During an audit these rights apply to the auditor’s questions, the interview and the final letter. They come with duties on your side. You must keep adequate records and give complete explanations, and the CRA notes that failing to provide required books and records is an offence.
What happens after a review or audit
Three outcomes are common. The CRA accepts your support and nothing changes. It changes your return and sends a notice of reassessment. Or it needs more, and asks again.
After an audit, if a reassessment is likely, the auditor sends a proposal letter. You then have 30 days to agree or disagree. If you disagree, you can send more documents and talk to the auditor’s team leader. Use that window.
A reassessment can mean tax owing, plus interest. Penalties apply in some cases. The false statement penalty, for statements made knowingly or in circumstances amounting to gross negligence, is the greater of $100 or 50% of the understated tax. A separate penalty for repeated failure to report income is the lesser of 10% of the unreported amount or 50% of the related tax difference, after withholding. Plain mistakes usually don’t trigger those. The CRA may also grant penalty relief if you voluntarily disclose unreported amounts before it contacts you.
For individuals, the CRA generally reassesses within a normal three-year period, though there are exceptions that this article does not cover. Our guide to CRA notices and unfiled returns covers the letters you may see along the way.
If you disagree with the result
You can file a notice of objection. For most individuals the deadline is the later of one year after the filing due date for the return or 90 days after the date of the notice of assessment. The CRA normally holds off collection on the disputed amount until 90 days after it sends you its decision. Interest keeps running from the original balance-due day on whatever is still owing once the dispute ends. The steps are in our guide on how to file a CRA notice of objection. See also the Tax Refund calculator, and the full set of tax calculators.
A plain checklist
- Read the letter twice and note the deadline and the reference number
- Confirm the letter is real by checking My Account or calling the number on a genuine CRA document
- Gather only the documents for the items named
- Call before the deadline if you need more time
- Send copies, keep the originals, and save your confirmation number
- If a proposal letter arrives, respond within 30 days
- Diarize the objection deadline if you get a reassessment you dispute
Sources
- Types of reviews
- Responding to us
- RC4188 What you should know about audits
- How long should you keep your income tax records
- Taxpayer Bill of Rights
- False reporting or repeated failure to report income
Common questions
Is a CRA review the same as an audit?
How long should I keep my tax records?
How long do I have to answer a review letter?
Can I dispute a reassessment?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.