CRA Taxpayer Relief in Canada: How to Apply Using Form RC4288

A late filing penalty, a long-running balance or an audit that dragged on can leave you with charges that feel unfair. The taxpayer relief provisions let the CRA cancel or waive penalties and interest in the right circumstances.

This article walks through who may qualify, how to use Form RC4288, what to include, and what your options are after a decision. It is general information for Canada and not a prediction of how your request will turn out.

This article covers Canadian federal tax law, which applies in every province.

What taxpayer relief is

Under the taxpayer relief provisions, the CRA may cancel or waive penalties and interest. It is a discretionary decision, so asking does not guarantee a particular result.

A request for penalty relief generally must be made within 10 years of the end of the calendar year of the tax year. Interest relief covers only interest accrued in the 10 calendar years before the year you make the request.

Interest on unpaid tax runs at the prescribed rate for as long as the amount is outstanding. The prescribed rate on overdue income tax for 1 October to 31 December 2026 is 7%, and rates are set quarterly. Because the rate changes, the interest on an old balance can add up in ways that depend on the periods involved.

The CRA may also reassess outside the normal reassessment period to the extent of a taxpayer relief request. A request under s. 152(4.2) must be made within 10 years of the end of the relevant calendar year.

Circumstances that may justify relief

• Extraordinary circumstances beyond your control, such as flood, fire, serious illness or a death in the immediate family.
• Actions of the CRA, such as processing delays, incorrect information or undue delay in an audit, objection or appeal.
• Inability to pay or financial hardship.

The CRA also weighs your compliance history, whether you knowingly left a balance outstanding, whether you exercised reasonable care, and whether you acted quickly to fix the delay or omission. A clear explanation of what happened and what you did about it matters.

Your situation may fit more than one category, or none of them neatly. Whether it qualifies depends on the facts, so it is worth confirming with a lawyer or accountant if you are unsure.

Step-by-step: applying with Form RC4288

You can complete Form RC4288 or send a letter. Individuals claiming inability to pay also submit Form RC376 or a written statement of finances.

• Identify which penalties and which years of interest you are asking about, and confirm they fall within the time limits.
• Write a clear timeline of the events that caused the delay or omission.
• Gather supporting documents, such as medical records, notices from the CRA or proof of financial hardship.
• Complete Form RC4288, or write a letter covering the same points.
• If you claim inability to pay, add Form RC376 or a written statement of finances.
• Submit through My Account, My Business Account or Represent a Client, or mail it.

Include all the circumstances you rely on, with supporting documents, in the first request. Do not hold back reasons to add later.

While your request is pending

Interest keeps accruing while a relief request is pending, so paying in full stops further charges. If relief is later granted, the interest is refunded. If relief is granted for inability to pay, interest is cancelled only up to the decision date.

If you cannot pay in full, think about what you can reasonably do while you wait, and keep proof of any payment you make. Your own circumstances determine the best approach, so a lawyer or accountant can help you weigh it.

If you disagree with the decision

A relief decision has no right of objection or appeal. You can ask for a second administrative review by a different official, or apply to the Federal Court for judicial review within 30 days of notice of the decision, and the Court may extend that period. The Court can only refer the matter back to the Minister.

Because the 30-day period is short, speak to a lawyer or accountant quickly if you are thinking about a second review or court application. Keep copies of everything you sent and received.

What to do next

Since there is no objection or appeal from a relief decision, preparation matters more than speed. A few practical steps can help you put forward a complete first request.

• Pull together your notices of assessment, penalty and interest notices, and any letters from the CRA.
• List every circumstance you want to rely on and match each one to a document.
• Check the time limits for penalty and interest relief before you start.
• Decide whether to use Form RC4288 or a letter, and add Form RC376 or a statement of finances if you claim inability to pay.
• Keep a full copy of what you send, and note the date and method of submission.
• If the facts are complicated, talk to a lawyer or accountant before you submit.

Frequently asked questions