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What Happens If You Ignore a CRA Audit Letter in Ontario

See what escalates when an Ontario taxpayer ignores a CRA audit or review letter, from a proposed reassessment to enforcement action.

Tax5 min readTSLBy the Treadstone Law team · OntarioUpdated 2026-07
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Key takeaways
  • If you don't respond by the deadline given: - The auditor typically proceeds with the information already available to them — which usually favours the CRA's position, not yours, since…
  • If the auditor believes adjustments are warranted, you'll typically receive a proposal letter setting out the changes and giving you a window to respond before anything becomes final.
  • Once the CRA issues a formal Notice of Reassessment, the clock starts running on your right to dispute it.

A CRA audit or review letter can feel easy to set aside, especially if you're busy, unsure what it's really asking for, or simply hoping the issue resolves itself. It won't. Ignoring a CRA audit letter doesn't stop the process — it just means the CRA moves forward without your input, which is almost always the worst version of the outcome.

Here's what tends to happen at each stage if you don't respond, and why answering early — even just to ask a question or request more time — puts you in a materially better position.

Stage 1: The Initial Letter or Document Request

This is the CRA's opening move: a request for information, receipts, or an explanation of something on your return. If you don't respond by the deadline given:

What to do instead: even a brief response — asking for an extension, clarifying what's being requested — keeps the file open for genuine engagement instead of default findings.

Stage 2: The Proposal Letter

If the auditor believes adjustments are warranted, you'll typically receive a proposal letter setting out the changes and giving you a window to respond before anything becomes final. Ignoring this stage means:

What to do instead: this is often the last low-friction chance to push back before you're in formal dispute territory. A short, well-supported response here can prevent months of objection and appeal later.

Stage 3: The Notice of Reassessment

Once the CRA issues a formal Notice of Reassessment, the clock starts running on your right to dispute it. Ignore this stage and:

What to do instead: even if you're not sure you disagree, get advice before the objection deadline passes. Filing an objection preserves your position; missing the deadline can eliminate it.

Stage 4: Collections and Enforcement

If a reassessment results in tax owing and nothing is paid, disputed, or arranged, the CRA has established collection powers, including the ability to garnish wages or bank accounts and register a lien against property, without needing to go to court first for most tax debts. Ignoring collections correspondence doesn't make the debt go away — it typically accelerates the CRA's use of these tools.

The Pattern Across Every Stage

If you respondIf you ignore it
You control what's in the recordThe CRA proceeds on what it already has
Deadlines can sometimes be extended by asking in advanceMissed deadlines are much harder to undo after the fact
Disputes stay administrative (objection) longerMatters escalate toward reassessment, collections, or worse
You keep more options openYour options narrow at every stage

Frequently asked questions

I missed a CRA deadline by a few days because I was travelling — is it too late?

Not necessarily. There is a process for requesting a late-filed objection in limited circumstances, but it requires showing a valid reason and isn't automatic. Get advice as soon as you notice the miss rather than waiting to see what happens.

Does ignoring a review letter (not a full audit) carry the same risk?

Yes, in the sense that an unanswered review can escalate toward further scrutiny or a less favourable outcome, though a review is a lighter-touch process than a full audit. Either way, a response is almost always better than silence.

If I can't pay what the CRA says I owe, should I still respond to the letters?

Yes. Responding and disputing (if you have grounds to) is separate from your ability to pay. The CRA has processes for payment arrangements, and ignoring correspondence because you can't pay tends to make both the dispute and the collections situation worse.

Can a tax lawyer help even after I've already missed a deadline?

Often yes — there may still be options like a late-filed objection request, a taxpayer relief application, or negotiating with collections, depending on how far things have progressed. The earlier you get advice after realizing you've missed something, the more options are typically still open.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

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