Got a Letter From the CRA? Here's What It Means and What to Do
Received a CRA demand to file, arbitrary assessment or audit letter? Learn what it means, your deadline, and how Sansar Solutions can respond for you.
Most CRA letters to businesses fall into a few types: a request for information, a demand to file, a notice of (arbitrary) assessment, or an audit notice. Each has a deadline, and responding on time is the single most important step. Sansar Solutions reads your letter, explains it in plain English, and can respond to the CRA for you.
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Common CRA letters and what they mean
| Letter | What it means | What to do |
|---|---|---|
| Demand to File | The CRA is formally requiring a missing return by a stated date. | File the return(s) before the deadline. Missing a demand can bring extra penalties. |
| Arbitrary assessment (T2 or T1) | The CRA estimated your income and assessed tax because no return was filed. | File the actual return. The CRA will usually reassess it. Act quickly to stop collections. |
| Notice of assessment / reassessment | The CRA processed (or changed) your return. | Review it. If you disagree, you generally have 90 days to file a notice of objection. |
| Request for information / review | The CRA wants documents to support a claim. | Send organized records by the deadline. |
| Audit notice | The CRA will examine your books (income tax, GST/HST or payroll). | Get representation, organize records, and respond through your representative. |
| Collections notice | There's an unpaid balance. | Pay or arrange a payment plan. Ignoring it can lead to garnishments. |
Summarized from CRA guidance. Always confirm the deadline printed on your letter.
How we help
- Read and triage. Use the free CRA Letter Analyzer or send us the letter on a free 15-minute call.
- Get authorized as your representative with the CRA.
- Fix the root cause. That might be catching up the books, filing overdue returns, or assembling audit documentation.
- Respond and follow through until the file is resolved.
Already charged penalties and interest, or have years you haven't reported? See voluntary disclosure and penalty relief.
CRA support is part of Sansar's one all-inclusive flat rate. Book a call with a rep for a custom quote →
Related guides on our main site
- Understanding a CRA demand to file letter
- Arbitrary assessment with the CRA: how it works
- How to dispute a CRA assessment
- What does a CRA tax audit mean?
- Sales tax audit: what to expect
CRA letter FAQ
What happens if I ignore a CRA demand to file? Ignoring a demand to file can lead to additional penalties, an arbitrary assessment, and in serious cases prosecution. File before the deadline on the letter.
Can I reverse an arbitrary assessment? Generally yes. Filing your actual return with accurate books usually leads the CRA to reassess based on your real numbers.
How long do I have to object to an assessment? Generally 90 days from the date of the notice of assessment or reassessment.
Can someone deal with the CRA for me? Yes. Once you authorize Sansar Solutions as your representative, we can speak with the CRA on your behalf.
Is the CRA Letter Analyzer free? [PLACEHOLDER: confirm it's free and what it does with uploaded files (privacy note)]
Based in Vancouver, serving businesses across Canada, mostly in Ontario, Alberta and British Columbia.
Don't wait on a CRA deadline. Book a free call or call (778) 652-2874.