Quick answer: A letter saying the Canada Revenue Agency (CRA) is reviewing your tax return does not automatically mean you are being audited. A review checks particular amounts, deductions or credits. A tax audit is a more detailed examination of records. In either case, start with the actual letter: confirm the request, the tax year, the requested documents, the response date and how to send them. The CRA says plainly that a return review is not an audit.
What this means: You do not need to guess what triggered the letter or follow a generic internet timeline. Your CRA notice tells you which process you are in and what information the agency needs.
What to do next: Read the letter completely, gather only the relevant records, and contact the number on it if you need clarification or more time. If an assessment is later changed and you disagree, the CRA objection guide explains the separate dispute path.
Is this a review letter or an audit?
A routine review can arrive after a return is filed or assessed. The CRA may ask for receipts or other proof of a reported item. Its return-review guidance and the letter itself explain how to respond.
An audit goes deeper into records. The CRA says an auditor will contact you by mail, phone or both to begin and explain the date, time and place. The audit may happen on-site or through a CRA office. The specific scope may include records connected to your return, not necessarily every item you have ever filed.
If you cannot tell which process applies, call the CRA using a verified number and quote the reference on the letter. Do not infer from a frightening subject line that a routine review is a full audit.
Why might a return be selected?
The CRA says audit selection uses risk assessment, including possible errors, indications of non-compliance and information it already has. That does not establish a list of guaranteed “audit triggers,” and selection alone does not prove you did anything wrong. A review may simply seek support for a deduction, credit or income item.
The practical question is not “Why me?” but “What exactly is requested?” Find the tax year and the items under examination. Then match each requested item to records you can provide. If a document does not exist or cannot be obtained promptly, tell the CRA rather than silently letting the response period pass.
For reviews, the CRA says to reply with the requested information as soon as possible. It also says to call the number in the letter if you need more time or cannot get the documents. Follow the date on your letter, not an invented standard review deadline.
What happens during an audit?
The CRA’s audit guide describes a process that begins with auditor contact. The auditor may ask for books, records, receipts, invoices, bank information or other material relevant to the return. The exact request depends on the issue and type of income.
On an on-site audit, the auditor presents identification. If the audit is handled through a CRA office, the auditor will explain how to bring or send records. An auditor may copy electronic records or borrow documents and provide a receipt for borrowed material.
Keep your own copies and a list of what you sent. Organize records by the item and year requested. If you have an accountant or authorized representative, establish who will communicate with the CRA so messages and requests do not get lost.
Do not send audit records by ordinary email. The CRA says auditors cannot receive them that way because email may not be secure. Ask the assigned auditor for the approved secure-submission route.
What if a record is missing?
Do not invent a receipt or assume that no record means an automatic loss. The CRA says you should try to get copies from whoever created missing records, such as a bank or supplier. If that is not possible, discuss it with the auditor or team leader; they may discuss other ways to confirm the reported amount.
For a review letter, contact the number on the letter when you cannot provide what it asks for. Keep a note of the missing item, whom you contacted and what the CRA told you to do. The answer depends on what is being verified.
A simple index can help: list the CRA-requested item, the document you have, the tax year and any remaining gap. That is an organizational aid, not a CRA-required form.
What happens after the auditor examines the records?
An audit can close with no change. If the CRA proposes a reassessment that would increase tax owing or result in a refund, its audit guide says you receive a proposal letter explaining why and have 30 days to agree or disagree. Read the date and instructions in the proposal and raise any issue with the auditor while that stage is open.
If you disagree, explain the point and supply relevant documents. The auditor should consider the explanation; unresolved concerns can be raised with the auditor’s team leader. A proposal is not the same thing as a final notice of reassessment.
At the end, the CRA sends a final letter. There may be no adjustment, more tax owing or a lower amount and refund. Only after an assessment or reassessment exists do the usual formal income-tax objection rules come into focus. Do not treat every audit letter as a “90-day objection notice.”
How long does the process take?
There is no reliable single number of weeks for all audits. The CRA says duration depends on the scope, condition of records, missing items and specialist consultation. A narrow request with organized documents may be simpler than a wide multi-year examination, but that is an observation, not a promised completion time.
The most useful way to avoid preventable delay is to respond to each actual request, ask for clarification when wording is unclear, and tell the CRA promptly when a document cannot be obtained. For a review, use the response date shown in the letter and ask for more time if necessary.
If you disagree with a final reassessment
First read the notice to see precisely what changed. A correction request may be suitable if the CRA needs missing information, while a formal objection is the route for certain disagreements about an assessment. These are not interchangeable, and talking to the CRA does not automatically preserve a deadline.
For an individual’s income-tax objection, the CRA’s objection guide says the filing deadline is generally the later of one year after the tax-return filing deadline and 90 days after the date of the notice. There are exceptions, including some determinations. Check the notice and the applicable rule immediately rather than applying a blanket 90-day rule.
Frequently asked questions
- Is a CRA review letter an audit?
- No. The CRA distinguishes a return review from a tax audit. Read the letter to identify the process and requested material.
- Can I email records directly to the auditor?
- The CRA says auditors cannot receive records by ordinary email. Ask your auditor how to use a secure submission service.
- Does an audit always mean more tax?
- No. An audit may end with no adjustment, more tax owing or a lower amount and a refund.
- How long does an audit take?
- The CRA does not give one duration for every audit. Scope, available records and other factors affect the time.
Related guides and official help
- Browse Canadian Money Help tax guides — related topics; confirm any amounts or deadlines with their linked official sources.
- CRA objection rights — if you disagree with a final assessment.
Rules and process basis
This guide separates two CRA processes: a return review and an audit. It is not a prediction of why your return was selected, how long your file will take, or the result. The notice you received and current CRA instructions control the next step.