CRA Requests for Information (RFIs): How to Respond Without Triggering an Audit + CRA Information Request Canada: How to Protect Yourself, Provide the Right Documents, and Avoid Reassessment

A CRA Request for Information (RFI) may look simple, but it is one of the most misunderstood—and dangerous—communications taxpayers receive. An RFI is not a casual inquiry. It is a preliminary audit tool used by CRA to test your compliance, assess the accuracy of your filings, and determine whether a full audit should be opened. Many taxpayers respond incorrectly, provide too much information, provide too little information, or unintentionally raise red flags that lead CRA to expand the review into a full-blown audit.

Properly handled, an RFI closes harmlessly. Handled poorly, it becomes an audit, reassessment, penalties, or even a multi-year tax investigation. This guide explains how CRA RFIs work, what they are really asking for, which documents you should and should not provide, and how a CPA ensures your case stays controlled, compliant, and safe.

What Is a CRA Request for Information (RFI)?
An RFI is a written request asking for documents, clarification, or additional details related to:
• income reported
• deductions claimed
• GST/HST or QST filings
• payroll information
• real estate transactions
• crypto activity
• business expenses
• foreign assets
• bank deposits
RFIs often appear routine but are actually part of CRA’s audit risk-assessment process.

Why CRA Sends an RFI
RFIs are triggered when CRA’s analytics detect inconsistencies, including:
• income lower than industry averages
• high expenses compared to income
• mismatched T4s, T5s, GST/QST data
• real-estate sales missing on returns
• crypto activity identified through exchange reporting
• unexplained deposits
• contractor payments with no slips
• foreign income inconsistencies
An RFI is CRA’s way of asking: “Should we audit this taxpayer?”

Types of RFIs

1. Pre-Audit RFI
   Used to decide whether to open an audit. This is the most common type.

2. Limited Review RFI
   Requests documents for one specific item (e.g., medical expenses, RRSP withdrawals).

3. GST/HST or QST Verification RFI
   Used to verify input tax credits or tax collected.

4. Business Expense RFI
   Targets mileage logs, home office claims, subcontractor invoices, advertising, vehicles, or CCA.

5. Crypto RFI
   Requests wallet addresses, transaction reports, and exchange statements.

6. Real Estate RFI
   Used to verify assignment sales, flips, principal residence claims, and GST/HST on new housing.

The Biggest Mistake Taxpayers Make:
Responding directly and informally to CRA.
Every word you write becomes part of your permanent CRA file.

What NOT to do when responding to an RFI
• Don’t volunteer extra information
• Don’t provide documents they didn’t ask for
• Don’t speculate or explain emotionally
• Don’t admit mistakes without CPA guidance
• Don’t ignore the deadline
• Don’t contradict past filings
Over-disclosure is the #1 reason RFIs become audits.

What CRA Wants from an RFI Response
A CPA ensures your response is:
• accurate
• limited to exactly what was requested
• professionally structured
• supported by proper documents
• free of inconsistencies
CRA looks for clarity, consistency, and compliance—not essays or excuses.

Documents CRA Commonly Requests

For employment:
• T4 slips
• employer letters
• union dues
• childcare receipts

For self-employment:
• invoices
• bank statements
• receipts for expenses
• advertising, vehicle, and home-office logs

For real estate:
• purchase and sale agreements
• renovation receipts
• rental ledgers
• proof of principal residence

For crypto:
• wallet addresses
• exchange downloads
• ACB calculations

For GST/QST:
• ITC support
• invoices
• sales summaries

For payroll:
• payroll registers
• employee vs contractor agreements

Only provide the specific documents requested, and no more.

How a CPA Prepares a Safe RFI Response

1. Review the request line-by-line
   We determine CRA’s intent and the audit risk level.

2. Analyze your previous filings
   We ensure your response does not contradict your tax return.

3. Organize documents into a structured evidence package
   • labelled
   • chronological
   • clearly linked to the tax return

4. Draft a controlled written explanation
   Short, direct, factual — never emotional or speculative.

5. Communicate with CRA on your behalf
   This prevents misinterpretation and protects you from over-questioning.

6. Identify and resolve exposure before CRA sees it
   If a mistake exists, we restructure the explanation safely to prevent penalties.

What Happens If You Ignore an RFI
CRA may:
• escalate to a full audit
• reassess without your input
• deny deductions
• freeze refunds
• impose penalties
Ignoring an RFI is one of the most damaging tax mistakes.

When an RFI Turns into an Audit
CRA escalates when:
• documents are missing
• information is inconsistent
• taxpayer explanations seem unclear
• bank deposits don’t match income
• expenses look personal
• taxable benefits appear unreported
• crypto or real-estate activities are unexplained

A CPA’s controlled response prevents escalation.

How to Appeal an RFI-Based Reassessment
If CRA reassesses you based on an RFI:
• You have 90 days to file a Notice of Objection
• We prepare a structured objection with full evidence
• We challenge CRA’s assumptions and methodology
• Many RFI-based reassessments are overturned at Appeals

RFIs can be reversed when defended early.

Mackisen Strategy
Mackisen CPA Montreal protects taxpayers and businesses by:
• interpreting CRA’s intent behind the RFI
• preparing controlled, risk-free responses
• preventing over-disclosure
• correcting exposure before CRA finds it
• negotiating extensions
• representing you fully with CRA
Our strategy aims to close the RFI without escalation or reassessment.

Real Client Experience
A Montréal Uber driver received an RFI about unreported income. Mackisen traced deposits, corrected CRA’s assumptions, and closed the review with no reassessment.

A Shopify seller faced an RFI about ITCs. We rebuilt invoices, provided CRA-ready documentation, and prevented a GST audit.

A real estate investor received an RFI on an assignment sale. Mackisen provided structured proof, and CRA accepted the principal-residence position.

A crypto trader received an RFI requesting wallet histories — we reconstructed ACB and closed the file safely.

Common Questions
Do RFIs always mean an audit? No — only if handled incorrectly.
Should I call CRA myself? No. Let a CPA speak for you.
What if I don’t have a receipt? A CPA can rebuild support using alternative documentation.
Can CRA reassess based on an RFI alone? Yes — if your response raises concerns.
Can an RFI be withdrawn? Yes if your CPA provides a clean, consistent explanation.

Why Mackisen
With more than 35 years of combined CPA experience, Mackisen CPA Montreal ensures taxpayers respond to CRA Requests for Information safely, strategically, and without triggering deeper audits. We protect you from penalties, reassessments, and unnecessary scrutiny — giving you confidence and peace of mind.