CRA Review Letter: What It Means and How to Respond

A CRA review letter is a written notice from the Canada Revenue Agency asking you to verify specific claims on your tax return. The CRA sends review letters after processing your T1 or T2 return when it flags certain deductions, credits, or income amounts for a closer look. A review letter is not an audit. It is a standard verification process where the CRA asks for supporting documents to confirm what you reported.

You typically have 30 days from the date on the letter to respond with the requested information, and failing to respond on time can result in the CRA adjusting your return and reducing or removing the claims in question.

What Is a CRA Review Letter?

A CRA review letter is a formal request for documentation that supports one or more line items on your filed tax return. The CRA reviews thousands of returns every year through its matching and verification programs. When your return gets selected, the CRA sends a letter to your mailing address or CRA My Account inbox identifying the claims it wants you to verify. The letter lists which lines are under review, what documents you need to provide, and the response deadline.

A CRA review letter does not mean you did something wrong. The CRA selects returns based on statistical models, random selection, and its matching program that compares amounts on your return against information slips filed by employers and banks. If your line 10100 on your tax return does not match the T4 your employer filed, or your charitable donations exceed the average for your income bracket, your return is more likely to be flagged.

A review is a document check handled by mail. An audit is a deeper investigation where a CRA auditor examines your books and financial affairs in detail, often in person. Most taxpayers who receive a CRA review letter are dealing with the simpler process.

Why the CRA Selected Your Return for Review?

The CRA uses several programs to identify returns that need verification, and some claims trigger reviews more often than others. The Matching Program compares income and deductions on your return against third-party data the CRA already holds. If your employer reported $65,000 on your T4, T4A or T5 slip but you reported $60,000 on line 10100, the system flags the discrepancy.

The Pre-Assessment Review catches claims before your Notice of Assessment is issued, holding your refund until you provide documents. The Post-Assessment Review happens after your NOA has been issued and your refund released.

Claims most commonly flagged include employment expenses on line 22900 (especially home office expenses), medical expenses you can claim, charitable donations above average for your income level, moving expenses, carrying charges, and child care expenses. If you claimed tuition tax credits and transferred a portion to a parent, the CRA may ask both parties to verify the transfer.

What Documents the CRA Asks For?

The CRA review letter specifies exactly which documents you need to send, and you should provide only what is requested. For employment expense claims, the CRA asks for your signed T2200 or T2200S and your completed Form T777.

For medical expenses, you need receipts showing the date of service, provider’s name, amount paid, and proof of any insurance reimbursements. For charitable donations, the CRA requires official donation receipts with the charity’s registration number, date, amount, and address.

For income discrepancies, the CRA may ask for copies of your T4, T4A, T5, or T3 slips, bank statements, or contracts if you reported self-employment income on Form T2125. Send exactly what the letter asks for. Do not send your entire filing package or extra documents. Unsolicited paperwork slows the review and can raise new questions about items not originally flagged.

How to Respond to a CRA Review Letter?

You have 30 days from the date printed on the CRA review letter to submit your response with the requested documents. Read the letter carefully and identify every document it asks for. Match each request to the specific line item under review. Organize your documents in the same order the letter lists them and include your Social Insurance Number and reference number on every page you send.

You can respond through three channels. CRA My Account allows you to upload documents electronically under the “Submit documents” feature, which is the fastest method. You can also fax the documents to the number on the letter or mail them to the CRA address provided. If you mail your response, use tracked shipping and keep the tracking number.

If you cannot gather all documents within 30 days, call the CRA before the deadline and request an extension. The CRA grants extensions when you have a reasonable explanation, but you must ask before the deadline passes, not after. For a full walkthrough of the T1 process, our step by step guide to personal tax returns in Canada covers every section.

What Happens After You Submit Your Response?

The CRA processes your response and issues one of three outcomes: no change, a partial adjustment, or a full reassessment. If the CRA accepts your documents and confirms your claims, your return stays as filed and you receive a confirmation letter. If your refund was held during a pre-assessment review, the CRA releases it at this point.

If the CRA finds that some claims are not fully supported, it issues a Notice of Reassessment adjusting the specific line items. The reassessment may reduce a deduction, remove a credit, or add unreported income. If the adjustment results in tax owing, the CRA charges interest from the original filing deadline, not the reassessment date, compounding daily at the prescribed rate.

If you disagree with the reassessment, you have 90 days to file a formal Notice of Objection through CRA My Account, by mail using Form T400A, or by letter. The CRA Appeals Division reviews your objection independently from the original reviewing officer.

Common Mistakes When Responding to a CRA Review Letter

Most problems come from missed deadlines, incomplete submissions, and responding to the wrong items.

• Not responding at all. If you ignore a CRA review letter, the CRA adjusts your return based on the information it has, which almost always means removing the flagged claims entirely. You lose the deduction or credit and owe any resulting tax plus interest.
• Sending documents after the deadline. The CRA can close the review and issue a reassessment once the 30-day window passes. Always call before the deadline if you need more time.
• Providing documents for the wrong tax year. The CRA review letter specifies the tax year under review. Receipts and slips from a different year do not support your claim.
• Not keeping copies of what you sent. If the CRA claims it never received your documents, you need proof of submission and copies of everything you provided. Keep duplicates and your tracking number.
• Amending your return out of panic. Some taxpayers file a T1-ADJ to remove the flagged claim before the review is complete. If your claim is legitimate and you have the documents, respond to the review instead of surrendering a valid deduction.

Tax Return Filers PC helps individuals and businesses across Toronto, Mississauga, Brampton, and Calgary respond to CRA review letters with all documentation prepared correctly, including personal income tax returns in Toronto, corporate tax filing in Mississauga, and bookkeeping services in Brampton that keep your records review-ready from day one.