What to Do if You’ve Been Reassessed by the CRA
When the Canada Revenue Agency (CRA) sends you a CRA reassessment, it means they’ve reviewed your tax return again and decided to change something. That change might result in more tax owing, a smaller refund, or a denial of deductions you claimed. If you’ve received a reassessment, it doesn’t mean you did anything wrong but it does mean you need to act quickly and a Toronto tax lawyer can help you protect your position.
At Kirshen Tax Law, we help individuals and businesses challenge unfair reassessments and resolve disputes with the CRA. Here’s what you need to know.
What Is a CRA Reassessment?
A reassessment is a revised version of your tax assessment. It can happen months or even years after you file. The CRA might reassess your return based on:
- A routine post-assessment review;
- New information from a third party (like an employer or bank);
- A targeted audit or investigation; or
- Random compliance checks.
The reassessment outlines the CRA’s changes and any new tax amount owing or refunded. It replaces the original Notice of Assessment and starts the clock on important deadlines.
Why Did the CRA Reassess Me?
There are several common reasons the CRA issues reassessments:
- Income not reported: The CRA may have received slips (like T4s or T5s) that weren’t included in your return.
- Disallowed deductions: Expenses for things like business use of home, vehicles, or medical costs may have been rejected.
- Math or entry errors: Even a small mistake can lead to a reassessment.
- Old slips or amended documents: Employers or financial institutions sometimes issue corrections after you file.
- CRA audit findings: If you were audited, the reassessment formalizes the CRA’s position.
- Alleged misrepresentation: If the CRA believes there was a serious error or omission, they can reassess older years sometimes going back six years or more.
How Long Does the CRA Have to Reassess?
Normally, the CRA has three years from the date of your original Notice of Assessment to reassess. But if they believe you were negligent, careless, or misrepresented facts, they can open older years, especially in cases involving unreported income or offshore assets.
What Are Your Options After a CRA Reassessment?
If you receive a Notice of Reassessment, don’t ignore it. You have rights but strict deadlines apply.
Step 1: Review the CRA Reassessment
Read the CRA’s explanation and compare it to your original return. Identify exactly what has changed and whether you agree.
Step 2: Decide Whether to Challenge It
If the CRA is right, you can accept the reassessment and pay any amount owing. But if you believe the CRA has made a mistake or applied the law unfairly you have the right to dispute it.
Step 3: File a Notice of Objection
To challenge a reassessment, you must file a formal Notice of Objection (Form T400A) within 90 days of the date on the reassessment. If you miss that deadline, you can request an extension but only within one year after the original deadline expires. If you miss both, the reassessment becomes final.
Step 4: Get Professional Support
The CRA may contact you for more information or documents, or assign an Appeals Officer to your file. This is where many taxpayers struggle especially if legal or technical issues are involved. A tax lawyer can present your case clearly and help negotiate a resolution. If your objection is denied, you can take the matter to the Tax Court of Canada.
A Toronto tax lawyer can guide you through both the objection and litigation process to ensure your rights are preserved.
Don’t Delay—Time Matters
Whether you’re disputing business expenses, rental income, foreign reporting, or an audit finding, the deadlines are real and missing them can cost you your right to appeal. Even if you plan to fight the reassessment, interest continues to build on amounts owing.
Kirshen Tax Law Can Help
At Kirshen Tax Law, we represent taxpayers facing reassessments and disputes at every level, from CRA objections to Tax Court appeals. We know how to challenge the CRA’s assumptions, protect your rights, and guide you through the process.
Call us today for a free consultationwith an experienced Toronto tax lawyer who knows how to respond effectively to a CRA reassessment and secure the best possible outcome.
Jeff Kirshen BA, JD (CA), JD (US)
Tax Lawyer | Founder, Kirshen Tax Law
Disclaimer
The content on this website, including articles and blog posts, is provided for general informational purposes only. It reflects the laws and regulations as of the date of publication, which may have since changed. This content is not intended to serve as legal advice and should not be relied upon as such. Tax laws and situations can be complex and unique to each individual. The information provided may not apply to your specific circumstances. For personalized advice regarding your tax or legal matters, we recommend consulting a qualified lawyer.