CRA Audit Letters – What to Do (And NOT Do)

Getting a letter from the Canada Revenue Agency (CRA) can feel stressful, especially when it says you’re being reviewed or audited. But most CRA audit letters are routine, and many reviews are resolved quickly when you provide the right documents.

This guide explains what CRA audit letters mean, how to respond, and the biggest mistakes to avoid.

What Is a CRA Audit Letter?

A CRA audit letter is a request for:

• More information

• Proof of certain claims

• Receipts or documents

• Clarification of your tax return

CRA sends these when something in your tax return needs verification—this does not automatically mean you did something wrong.

Many people get these letters simply because:

• A deduction is unusually high

• Something doesn’t match CRA records

• You claimed credits like childcare, medical, moving, or employment expenses

• You’re self-employed

• Your return was randomly selected

Common Types of CRA Audit Letters

CRA may review:

• Childcare expenses

• Moving expenses

• Tuition or education credits

• Medical expenses

• Disability Tax Credit

• Employment expenses (T2200)

• Rental income

• Business or self-employment income

• GST/HST filings

• CCB eligibility

Each review requires different documents, but the process is generally the same.

What To Do When You Receive a CRA Audit Letter

1. Stay Calm — Most Reviews Are Simple

A CRA letter doesn’t mean you’re in trouble. It usually just means CRA needs proof.

2. Read the Letter Carefully

Look for:

• What CRA is asking for

• The tax year being reviewed

• The deadline for sending documents

• The fax/email/mailing address where CRA wants the documents

3. Gather the Required Documents

Depending on the letter, CRA may ask for:

• Childcare receipts

• Rent or mortgage agreements

• Medical receipts

• T2200 + work-from-home or employment expense records

• Tuition receipts (T2202)

• Logbooks for vehicle expenses

• Bank statements

• Business income records

• Invoices or contracts

Always provide clear, legible copies.

4. Respond Before the Deadline

Missing the deadline can lead to:

• CRA denying your claim

• Penalties

• Interest charges

• A reassessment that increases tax owing

If you need more time, call CRA—they often grant extensions.

5. Keep Copies of Everything You Send

If CRA loses your documents, you’ll need proof you already submitted them.

What NOT To Do When You Get a CRA Audit Letter

❌ Don’t ignore the letter

CRA will automatically deny your claims if you don’t respond.

❌ Don’t send random documents

Only send what CRA specifically asks for.

❌ Don’t argue or get emotional

CRA agents are simply verifying information—they are not accusing you of fraud.

❌ Don’t send originals

Always send copies, unless CRA specifically requests originals.

❌ Don’t change your story

Your documents must support what you claimed on your tax return.

❌ Don’t send messy, unclear receipts

Hard-to-read documents may cause CRA to deny the claim.

❌ Don’t respond without understanding the issue

Mistakes in your reply can trigger a deeper audit.

If you’re unsure, a tax professional can help prepare your response.

What Happens After You Respond?

CRA will:

1. Review your documents

2. Decide whether to allow or deny the claims

3. Send a Notice of Reassessment

Outcomes may include:

• No change

• Additional refund

• Reduced refund

• Balance owing

• Request for more information

If CRA denies a claim unfairly, you can appeal.

When You Should Get Professional Help

You should seek help if:

• CRA asks for many documents

• The review involves self-employment

• You disagree with CRA’s decision

• Your refund is being reduced significantly

• You are asked to pay back benefits

• You receive repeated letters each year

TikiTax has experience handling all types of CRA reviews and audits. We help prepare documents, communicate with CRA, and protect your refund.

Final Advice

A CRA audit letter can be intimidating, but the process is manageable when you:

• Stay calm

• Respond on time

• Provide clear documents

• Avoid common mistakes

If you’re unsure how to reply, TikiTax can handle the entire audit response for you and help you avoid unnecessary tax owing.