A letter from the Canada Revenue Agency asking about a return or transaction can be unsettling, but a review is often a request to verify specific information. It is not, by itself, proof that something is wrong. Read the letter carefully, note the response deadline, and identify the tax period and items CRA wants to see before gathering records.
Confirm the request and its scope
Check that the letter is genuine using contact details from an official CRA source if you have any doubt. Pay attention to how CRA wants the information submitted and whether the request includes a reference number. Do not ignore the response date. If you need more time, contact CRA using a verified channel as soon as possible and ask what options are available.
Make a checklist from the request. If CRA asks about a particular expense, sale, GST/HST amount, or payroll entry, focus first on the documents that support that item and the period under review. Avoid sending unrelated records simply because they are available; provide what is requested and clarify any uncertainty before expanding the response.
Gather records and reconcile the numbers
Collect the original documents behind the reported amounts. Depending on the request, these may include invoices, receipts, contracts, bank or credit card statements, deposit records, mileage logs, payroll reports, GST/HST returns, and bookkeeping reports. Make sure dates and amounts match the relevant accounting entries.
For a business expense, the record should help show what was purchased, when, from whom, how much it cost, and how it related to the business. For sales or GST/HST, compare invoices and deposits with your bookkeeping and filed returns. If figures do not agree, investigate and document the reason rather than changing a record without an explanation.
Send a clear, complete response
Organize files in the order of CRA’s questions and use clear filenames. Keep a copy of everything you send, along with the submission confirmation and any notes about calls. If a document is missing, explain what you looked for and provide the best available supporting information. Do not alter receipts or reconstruct details as if they were original records.
- Keep the letter, deadline, and reference number together.
- Match each requested item to the supporting records.
- Review the response for missing pages and readable files.
- Save a complete copy of your submission and CRA correspondence.
If the request is broad, the amounts are significant, or you are unsure how to answer, get professional help before sending a response. Ledgerline Accounting can help you get in touch for support with a CRA review.
This article is general information, not financial advice, and it may not reflect the latest rules or your own situation. Talk to Ledgerline Accounting about your circumstances before acting on it.