Have you received a reassessment from the Canada Revenue Agency (CRA) that changed your tax return results? Don’t panic. Understanding what a CRA reassessment means and how to respond effectively can help you protect your rights and possibly avoid additional penalties or interest.
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📄 What Is a CRA Reassessment?
A CRA reassessment is when the agency reviews and modifies a tax return you’ve already filed. This can happen because of:
- Unreported income
- Incorrect deductions or credits
- New information received (e.g., T4 slips, audits)
- Errors made by the taxpayer or the CRA
You’ll receive a Notice of Reassessment (NOR), which shows the changes made to your original return and the new balance owing, refund, or no-change status.
🔎 Carefully Review the Reassessment
- Compare it to your original return to identify what changed
- Look for missing documents such as T4s, T5s, receipts, or slips
- Check if there was a data entry mistake or misinterpretation of your claims
If you understand and agree with the reassessment, you can accept it and move on — or make a payment if you owe taxes.
🙋 What If You Disagree With the CRA?
If you believe the CRA made an error, you have 90 days from the date of the reassessment to object by filing a formal notice of objection (Form T400A). Here’s how:
- Log in to CRA My Account
- Select “Register my formal dispute”
- Provide all supporting documents and a clear explanation
- Wait for a CRA appeals officer to review your case
The objection process can take several months, depending on the complexity of the issue.
💳 What If You Owe More Tax?
- You must pay the amount owing by the deadline to avoid interest charges (even if you file an objection)
- You can set up a payment arrangement through CRA if you can’t pay in full
- Interest starts accumulating the day after the payment due date
⚠️ Potential Penalties & Interest
The CRA may charge penalties for:
- Repeated failure to report income
- Gross negligence (e.g., willfully omitting income or falsifying claims)
- Late payment or filing
Accurate and timely filing is the best way to avoid additional charges.
Become Our Featured Tax Expert.
This premium ad space is reserved for one tax professional. Put your firm in the spotlight and reach qualified Canada leads directly.
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📘 Helpful Resources
📝 Final Thoughts
A CRA reassessment doesn’t always mean you did something wrong. Sometimes it’s just an adjustment based on new info. If you disagree with it, act fast, organize your records, and file a proper objection. If you agree, settle the balance and keep stronger records moving forward.
Disclaimer: This blog is intended for informational purposes only and does not constitute tax or legal advice. Please consult a licensed tax professional for personalized guidance.
