Responding to a CRA Review or Audit

Receiving a letter from the Canada Revenue Agency can make anyone's heart sink — but a CRA review or audit is not necessarily cause for alarm. Many reviews are routine, and with the right response most are resolved without difficulty. What matters is knowing what to do, what not to do, and when to get professional help. This guide from BOMCAS Canada explains how to respond calmly and effectively if the CRA contacts you.

The worst thing you can do is ignore a CRA letter or respond hastily without understanding what is being asked. The best thing you can do is read it carefully, gather the right documentation, and respond accurately and on time — ideally with a professional in your corner. Below we explain the process and how to protect your interests.

Reviews versus audits: know the difference

Not every CRA contact is a full audit. The CRA conducts many reviews, which are routine checks — often asking you to support a specific deduction or credit you claimed, such as medical expenses, donations or childcare. These are common, frequently triggered automatically, and usually resolved simply by sending the requested receipts. An audit is more comprehensive: the CRA examines your books and records in depth to verify that your income and deductions are correct. Understanding which one you are facing shapes your response.

Read the letter carefully and note the deadline

Every CRA letter specifies exactly what is being requested and a deadline to respond — often 30 days. Read it closely to understand precisely what they want; sending more than asked can sometimes invite further questions, while sending less leaves your claim unsupported. If you need more time to gather documents, you can usually request an extension. Never simply let the deadline pass: failing to respond typically results in the CRA disallowing the item and reassessing you, often with interest.

Gather your documentation methodically

Respond with clear, organised documentation that directly supports the item in question — receipts, invoices, bank statements, contracts, logbooks or slips, as applicable. Provide copies, never originals, and include a brief cover explanation that ties the documents to the claim. Well-organised, complete responses resolve most reviews quickly. This is precisely why good record-keeping throughout the year is so valuable: it turns a stressful request into a simple task.

What not to do

Do not ignore the letter. Do not guess or provide inaccurate information. Do not volunteer unrelated information that could broaden the scope of the inquiry. Do not be confrontational — the CRA officer is doing their job, and a cooperative, professional tone serves you well. And do not assume you must accept the CRA's position if you disagree; you have rights, including the right to a fair review and to formally object to a reassessment.

Your rights and the objection process

If the CRA reassesses you and you disagree, you generally have 90 days from the date of the reassessment to file a Notice of Objection, which sends the matter to the CRA Appeals division for an independent review. Beyond that, there are further avenues, including the Tax Court of Canada. The Taxpayer Bill of Rights guarantees you fair treatment, professional service and the right to be represented. Knowing these rights changes the dynamic: you are not simply at the mercy of an assessment.

When to get professional representation

For a simple review asking for a single receipt, you may be comfortable responding yourself. But for an audit, a complex matter, a significant amount of money, or any situation where you feel uncertain, professional representation is invaluable. An experienced advisor communicates with the CRA on your behalf, ensures responses are accurate and complete, frames the facts persuasively, keeps the scope appropriate, and protects your rights throughout — often achieving better outcomes and far less stress.

How BOMCAS Canada helps

At BOMCAS Canada, we represent Saskatchewan individuals and businesses in CRA reviews, audits, reassessments and objections. We can deal directly with the CRA as your authorised representative, prepare and organise your documentation, respond to information requests, and advocate for the correct treatment of your affairs. If you have unfiled returns or undisclosed income behind the inquiry, we can also advise on the Voluntary Disclosures Program and catching up on back filings to limit penalties.

If you have received a letter from the CRA, the sooner you act, the better your options. Explore our CRA audit representation services or book a free consultation — we will review your letter and explain exactly how to respond. We help clients across all of Saskatchewan.