Responding when CRA opens an audit
An audit letter asks for records and explanations. Knowing the usual stages helps you stay organized without guessing what the agency will conclude.
What an audit letter usually signals
A CRA audit is a review of returns, books, or a specific issue. The first contact is often a letter naming the tax years, the type of review, and a contact officer. It is not the same as a collections demand, though unpaid balances can follow later if assessments change.
Typical stages
Many files move from an opening letter, to document requests, to questions about particular entries, then to a proposal letter outlining possible adjustments. After that, a reassessment may issue. Each stage has its own clock. Missing a document deadline can escalate the tone of the file even when the underlying issue is fixable.
Deadlines and document windows
Response dates on information requests are often short—sometimes a few weeks. Proposal letters can carry a limited window to reply in writing before the assessment is finalized. Objection rights after reassessment are commonly measured in days from the notice date (often 90 days for many income-tax matters). Always read the date line on your letter.
What to gather
Keep the original returns, ledgers, invoices, bank statements, payroll registers, contracts, and any prior correspondence with the same officer. Create a simple index so you can find items quickly. Do not alter historical records; explain gaps in writing if something is missing.
Important limits
Informational only—not advice. How you respond can affect outcomes; talk with an advisor who has read your letter before you send a detailed reply.