Let’s look at what happens after CRA reaches out, step by step, so you can handle your audit with calm confidence:
Step 1: Initial Contact & Information Request
What Happens: CRA will reach out by phone or email to request more information about your claim.
What You Do: Confirm receipt and start gathering your supporting documents—technical reports, timesheets, invoices, payroll, and contracts.
Timeline: Within a few weeks of filing
Step 2: The Site Visit or Online Meeting
What Happens: CRA will meet with you either onsite or online to discuss both the technical and financial sides of your claim.
What You Do: Set aside about four hours for this meeting and invite your project leads and accountant—they know the details best.
Timeline: Usually within 2–4 weeks of initial contact
Step 3: Post-Meeting Information Request
What Happens: After the meeting, CRA will send a written Request for Information.
What You Do: Provide any missing details or supporting documents they’ve asked for.
Timeline: You’ll usually have 30 days to respond, so act quickly.
Step 4: CRA Review Period
What Happens: CRA reviews everything—your technical story, financial numbers, and supporting evidence.
What You Do: Stay professional and responsive. The more cooperative you are, the smoother this goes.
Timeline: Usually takes about 120 days, sometimes longer if they ask follow-up questions.
Step 5: The Proposal Letter
What Happens: CRA sends a Proposal Letteroutlining what they think qualifies, what doesn’t, and your estimated refund.
What You Do: You can either a) accept it and waive your 30-day response period to get your refund faster, or b) respond within 30 days with extra documentation if you disagree.
Timeline: Immediate or a 30 day response period.
Step 6: Final Notice of Assessment
What Happens: After CRA reviews your response, they issue a Notice of Assessment confirming your final credit amount.
What You Do: If you’re happy, you’re done! If not, you can still file a Notice of Objection within 90 days.
Timeline: 90 Days to file Notice of Objection
Step 7: CRA Appeals Review
What Happens: If you’ve filed Notice of Objection, the CRA Appeals Division will review your objection and make a final determination. They will also contact you to try to resolve the dispute.
What You Do: Wait for the determination. Communicate professionally. Discuss with your tax consultant and accounting professionals.
** Most claims never reach this stage**
Reminder! Audits can sound intimidating, but with clear records and open communication, you’ll handle them like a pro.
NEXT Steps
Next, we’ll have a short quiz – “Your Audit IQ: How Well Do You Think Like CRA?”
