An unexpected envelope from the Canada Revenue Agency is alarming, but the first letter is usually the mildest thing the CRA sends. In most cases it is a review, not an audit — the CRA says so itself — and it is asking you to prove one number on a return you have already filed. What matters is reading which programme sent it, answering by the date on the letter, and sending exactly what was asked for.
What an initial contact letter from the CRA means
"Initial contact letter" is what most people call the first letter the CRA sends about a filed return. It normally means your return was picked up by one of the CRA's review programmes, which check that amounts claimed are reported correctly and properly supported. The CRA is explicit that this is not an audit: "when we select your return for review, that it does not represent a tax audit."
Being selected does not mean the CRA believes you did anything wrong. Returns are chosen by a mix of risk scoring, random selection and comparison against information the CRA already holds, and plenty of reviews end with no change at all.
Which letter did you get?
The programme name is usually printed on the letter, and it tells you where in the process you are.
| Programme | When it happens | What it is checking |
|---|---|---|
| Pre-assessment Review | Before your notice of assessment is issued | A claim on the return you just filed — your refund waits until it is settled |
| Processing Review | After the notice of assessment | The same kind of claim, checked once the return has been assessed |
| Matching Program | After the notice of assessment | Your return against third-party records — employer T4s, bank and investment slips |
| Request Verification | Before a notice of reassessment | A change you asked for, to confirm it is allowable and supported |
| Refund Examination | Before or after assessment | That the refund being issued is the correct one |
| Supplementary Examination | Before or after assessment | Income, losses and deductions that need a closer look |
Two more exist: Special Assessments, which looks at wider patterns of non-compliance and always writes to the taxpayer directly even when a representative is on file, and Identity Protection Services, which contacts people whose accounts show signs of identity theft. The CRA lists all of them on its types of review page.
A matching letter is a different animal
If the letter says your return was compared against information from employers or financial institutions, it came from the Matching Program, and the CRA already has a number it believes is right. The usual causes are ordinary: a T4 or T5 that arrived after you filed, a slip sent to an old address, investment income from an account you forgot, or a slip issued under a name the CRA could not match.
These letters are easy to settle when the slip is genuinely yours — you agree, and the CRA reassesses. They are worth arguing only when the third-party slip is wrong or duplicated, and then you need the issuer to correct it rather than simply telling the CRA it is wrong.
A notice of collection is not a review at all
A review asks for documents. A notice of collection concerns money the CRA says you already owe, and it is the start of a different process with different urgency. If that is what landed, the question is not "what do they want to see" but "is this balance right, and how is it going to be paid". Do not file it with the review correspondence.
What to do, in order
- Check it is really from the CRA. A genuine review letter names a programme, carries a reference number in the upper right corner, and asks you to send documents — never to pay by e-transfer, gift card or cryptocurrency, and never for your passwords. Our guide to what to do when the CRA writes to you covers the scam checks in detail.
- Find the deadline. The letter states a time frame — reply within it. If you need longer, call the number at the bottom of the letter and ask; the CRA's own instructions point you there.
- Send only what was asked for. Receipts and supporting documents for that claim, with the reference number included so the file is matched to your letter. Sending a shoebox of unrelated paper slows the review down.
- Submit it online if you can. Scanned documents can go through CRA Account, which is faster than mail and leaves a record that they arrived.
- If you cannot find the receipts, say so in writing, or call and explain. A missing receipt is not automatically a denied claim — but silence is.
- If the claim is changed and you disagree, you can still send more information afterwards; the CRA will look at a claim again for a possible adjustment.
The full instructions, including the submit-documents-online route, are on the CRA's responding to us page.
What happens if you ignore it
Nothing good, and nothing dramatic at first. For a pre-assessment review the refund simply stops where it is. For reviews after assessment, the usual outcome is that the claim is disallowed, the return is reassessed without it, and a balance appears — with interest running from the original due date. At that point the matter moves to collections, which is a harder conversation than the one you were originally offered.
If you are self-employed
Business owners see these letters more often, because business returns carry more claims that can be asked about: vehicle expenses, home office, subcontractor payments, meals. The response is the same, but the preparation is different — the time to think about it is when the books are kept, not when the letter arrives. Clean records make a review a half-hour of photocopying instead of a week of reconstruction, which is exactly what the six-year record keeping rule is for.
Frequently Asked Questions
What does an initial contact letter from the CRA mean?
It usually means a return you filed was selected by one of the CRA's review programmes, which ask you to support a claim with documents. The CRA states plainly that a review is not an audit. The letter names the programme, carries a reference number in the upper right corner, and gives a date to reply by.
Is a CRA review the same as an audit?
No. A review checks one or more claims on a filed return and is usually settled by sending receipts. An audit is a broader examination of your books and records. The CRA runs reviews every year across a large number of returns as part of routine compliance work.
How long do I have to respond to a CRA letter?
The time frame is stated in the letter itself, so there is no single answer. If you need more time, the CRA's instruction is to call the number at the bottom of the letter and ask before the date passes.
What is a CRA matching letter?
It comes from the Matching Program, which compares your return against information from third parties such as employers and financial institutions. It generally means the CRA has a slip you did not report, or reported differently. If the slip is correct, agreeing is usually the fastest route; if it is wrong, the issuer has to correct it.
Can I ignore a CRA review letter if I think the claim is fine?
No. Without a reply the claim is normally disallowed and the return reassessed without it, leaving a balance with interest from the original due date. If you believe the claim is correct, that is the reason to answer, not to wait.
A review letter is a deadline, not a verdict. If one has arrived and the records behind the claim are not where they should be, our team can assemble the response and deal with the CRA on your behalf — book a free consultation and bring the letter.