What to Do When Your Business Receives a CRA Request for Information
A CRA request for information should be handled promptly and methodically. An organized response can help the CRA review the information efficiently and reduce unnecessary follow-up.
Do Not Ignore the Letter
Receiving a letter or request from the Canada Revenue Agency does not automatically mean that something is wrong with your tax return. The CRA may contact a taxpayer or business because it needs documents or additional information to verify amounts that were reported.
The most important first step is to read the request carefully and note the response deadline, reference or case number, tax year or reporting period involved, and the specific documents requested.
Confirm the Request Is Legitimate
Before sending sensitive business or personal information, confirm that the communication is genuinely from the CRA. Use official CRA contact information and secure CRA services rather than relying on unfamiliar links or contact details in suspicious messages.
If you are unsure about a request, verify it before providing information.
Organize the Supporting Records
The documents required will depend on the issue being reviewed. A business may need invoices, receipts, bank statements, credit card statements, payroll records, contracts, proof of payment, sales records, GST/HST documentation, or other accounting records.
Provide documents that directly address the CRA’s request and organize them so that the reviewer can understand how the supporting information connects to the amount reported.
Respond by the Deadline
CRA guidance emphasizes responding within the time frame stated in the letter. If the requested information is not provided, the CRA may complete its review using the information already available, which can result in an adjustment.
If you cannot obtain the documents by the deadline, contact the CRA office or number identified in the letter before the deadline to discuss the situation.
Use the Correct Reference Number and Submission Method
When responding, include the reference or case number shown on the CRA correspondence and follow the submission instructions in the letter. Depending on the type of review, documents may be submitted through an appropriate secure CRA online service or by another method specified by the CRA.
Keep copies of everything submitted and retain confirmation details when documents are sent electronically.
Review Your Accounting Records Before Responding
A CRA request is easier to manage when the bookkeeping and tax filings agree with the supporting records. Before submitting information, reconcile the relevant accounts and identify any differences that may require an explanation.
Avoid sending a large collection of unrelated documents without reviewing them first. A clear, organized response can make it easier to address the CRA’s questions.
How M&L Accounting Inc. Can Help
M&L Accounting Inc. provides CRA Support & Correspondence services for accounting and tax-related matters. We can help review CRA requests, organize supporting accounting records, reconcile relevant accounts, prepare documentation, and assist with responses related to corporate tax, personal tax, GST/HST, and payroll matters within the scope of our services.
If you receive a CRA letter or request for information, contact M&L Accounting Inc. promptly so the request and deadline can be reviewed.
Important Information
This article provides general information only. Requirements can vary based on the facts, jurisdiction, industry and type of business. It is not legal advice. Government rules and administrative procedures can change, so current requirements should be confirmed before taking action.
