More business owners are receiving CRA review letters as enforcement of existing and new tax rules continues to increase. Most reviews are routine, but responding promptly and accurately is essential. And with the emphasis from the CRA on online correspondence, watching for any correspondence is vital.
Why the CRA May Contact You in 2026
CRA reviews are triggered when something doesn’t align with their data. This year, the CRA is watching more closely for:
- Unreported digital or platform income (Etsy, Airbnb, Uber, freelance platforms)
- Cryptocurrency transactions not reported correctly
- High‑risk deductions like vehicle, meals, travel, home office
- Large swings in revenue or expenses from prior years
These patterns often lead to a simple review request, not a full audit.
Digital Mail Is Now the Default
Most CRA notices including review letters are now delivered only through My Business Account or My Account unless paper mail has been specifically requested.
- This change began widely in May–June 2025, and continues into 2026.
- CRA considers that a notice is received the day it is posted in your account, even if you haven’t logged in yet.
How to Respond to a CRA Review Letter
- Read the request carefully
Identify what CRA wants, typically: receipts, income proof, invoices, bank statements, or clarification of a specific claim.
- Gather documents promptly
Provide exactly what is requested. Incomplete information can escalate the review.
- Submit through the correct portal
Most responses must now be uploaded directly through My Business Account.
- Keep explanations simple
A short, factual explanation for any discrepancies is usually enough. You are usually provided 30 days to respond to a review request, which can often be extended. If you miss responding a notice of reassessment is often the next step and you may still object to that within 90 days. Once you miss objecting to the notice of reassessment your options become more limited.
When to Ask for Help
Reach out to your accountant for support if:
- You are unsure what CRA is asking for
- Documentation is missing or unclear
- CRA questions revenue, GST/HST filings, or shareholder transactions
- A second letter escalates the review to an audit
Quick CRA Audit Preparedness Checklist
- Log in to My Business Account
- Open new CRA correspondence immediately
- Note your response deadline
- Gather and upload required documents
- Keep copies of everything sent
- Get help if the request is unclear
Related Reading
CRA Audit Activity Is Increasing in 2025: What Small Businesses Should Know Now
Accounting and Advisory Support for Canadian Business Owners
If you receive a CRA review or audit letter this tax season, we can help you understand the request, prepare documentation, and respond correctly. Schedule an introductory meeting today to learn more about becoming a KWB client and how we can support your success.
