Got a CRA Letter? Here's Exactly What to Do!

You opened the envelope. Your stomach dropped.

Maybe it's sitting on your kitchen table right now, or you just pulled it from your mailbox on the way in from work. Either way, that CRA logo at the top has a way of making everything feel urgent and ominous, even when it isn't.

Here's the truth: most CRA letters are routine. Many require no action at all. But some do need a fast, careful response, and knowing the difference is everything. This guide will walk you through the five types of CRA letters, what each one actually means, and exactly what to do next if you're in Richmond or Vancouver, BC.

The 5 Types of CRA Letters, and What Each One Means

Not every letter from the CRA is a red flag. Before you do anything, identify which type you're holding.

1. Notice of Assessment (NOA)

This is the most common letter Canadians receive from the CRA, and it's usually nothing to worry about. Your NOA is simply the CRA's confirmation that they've processed your tax return. It shows your total income, deductions, and any balance owing or refund.

Read it over and make sure the numbers match what you filed. If they do, great, file it away. If something looks off, that's worth a second look.

2. Request for Information

The CRA wants to see documents supporting something on your return, maybe a charitable donation, a business expense, or a medical claim. This is a verification step, not an accusation.

Respond within the deadline stated in the letter. Pull together the documents they've asked for, organized clearly. This type of letter is very common for self-employed individuals and small business owners in BC.

3. Notice of Reassessment

This one means the CRA has reviewed your return and changed something, your income, a deduction, or a credit. They've recalculated what you owe (or are owed), and they're telling you the new number.

A reassessment isn't automatically bad news, but it does require attention. If you disagree with the change, you have 90 days to file a formal objection. Missing that window can cost you the right to dispute.

If your business involves corporate tax filings or GST/PST, a reassessment can ripple into those areas too, another reason to understand it fully before acting.

4. Audit Notification

This is the letter most people fear. An audit notification means the CRA is examining your return in detail, they may request records going back several years, ask for explanations of specific transactions, or conduct an in-person review.

An audit doesn't mean you've done something wrong. But it does mean you should not navigate it alone. The way you respond, what you say, what documents you provide, and in what order, can significantly affect the outcome.

If you've received an audit notification, get professional help before you respond.

5. Collections Letter

If you have an outstanding balance with the CRA and haven't paid or arranged a payment plan, you'll eventually receive a collections notice. The CRA has significant powers here, they can garnish wages, freeze bank accounts, and place liens on property.

Act fast. A tax professional can often negotiate a payment arrangement or, in some cases, reduce the amount owed through a proper dispute process.

What To Do in the First 48 Hours

No matter which type of letter you received, these steps apply immediately.

Don't ignore it.

CRA deadlines are real and unforgiving. Missing a response window, even by a few days, can eliminate your right to dispute a decision or trigger additional penalties. The clock starts the day the letter is dated, not the day you opened it.

Read the letter carefully.

What is the CRA actually asking? Many people skim a CRA letter, panic, and assume the worst. Read it twice, slowly. Look for: the deadline, the specific document or action requested, and the contact name or reference number. Most letters are narrower in scope than they first appear.

Gather the relevant documents.

If they're asking for receipts, pull them. If they've referenced a specific tax year, gather your files from that year. Getting organized before you respond, or before you call a professional, saves time and money.

Don't call CRA without a plan.

This is one of the most common mistakes people make. CRA agents are not your advisors. What you say during a call can be used in their review. If you're unsure about anything in the letter, speak to a tax professional in Richmond or Vancouver before picking up the phone.

For bookkeeping clients especially, if your records aren't in order, now is the time to get them organized before any CRA conversation happens.

When You Need a Professional (Be Honest With Yourself)

Some CRA letters you can handle on your own. Others, you really shouldn't try to.

Here's the honest breakdown:

• Audit notification → Always get a professional. No exceptions. The stakes are too high and the process too technical.

• Notice of Reassessment you don't understand → Get a professional. Especially if a significant amount is involved or the change doesn't make sense to you.

• Collections letter → Act immediately and bring in help. A professional can negotiate directly with CRA collections on your behalf and may be able to set up a payment arrangement that works for your situation.

• Request for Information → You may be able to handle this yourself if your documents are organized. But if you're unsure what they're asking for, or if you're self-employed with complex deductions, a quick consultation is worth it.

The right expert tax advice at this stage can be the difference between a minor inconvenience and a years-long dispute.

You Don't Have to Figure This Out Alone

Tax Spade has helped thousands of individuals and businesses in Richmond and Vancouver resolve CRA issues, from simple reassessments to complex audits and collections negotiations.

If you're holding a letter right now and you're not sure what it means or what to do, book a free consultation. We'll read the letter with you, tell you exactly where you stand, and give you a clear next step, no jargon, no pressure.

📞 Call or WhatsApp: 604-213-8318
📧 info@taxspade.com