Responding to a CRA Pre-Assessment Review Request – A Complete Guide by a Montreal CPA Firm Near You

Introduction

A CRA Pre-Assessment Review is one of the most misunderstood compliance processes. Unlike a full audit, a pre-assessment review happens before your tax return is officially assessed and before you receive your Notice of Assessment. CRA triggers these reviews when something in your return requires verification—such as medical expenses, tuition, childcare, moving expenses, RRSP contributions, or employment expenses. Responding correctly and on time is critical: a weak or incomplete response can lead to denied credits, reduced refunds, delayed assessments, or escalation into a full audit. This guide explains exactly how pre-assessment reviews work and how to respond effectively to protect your return.

Legal and Regulatory Framework

CRA conducts pre-assessment reviews under its authority in the Income Tax Act, allowing it to verify information before issuing an assessment. Returns flagged for review must be supported with documentation, or CRA may adjust or deny the claimed amounts. Unlike a full audit, CRA limits its request to specific line items, but the request is still legally binding. You typically have 15 to 30 days to respond with complete documentation. Failure to respond results in adjustments, penalties, delays in refunds, or follow-up audits.

Key Court Decisions

Although pre-assessment reviews rarely reach the courts, jurisprudence still reinforces CRA’s verification powers. In Leblanc v. Canada, medical claims were denied due to insufficient documentation—proving CRA is strict. In Hicks v. Canada, tuition and education claims were reversed only after proper receipts were provided. These cases confirm that documentation—not explanation—is what matters.

Why CRA Selects Returns for Pre-Assessment Review

CRA typically flags returns due to: unusual or large claims, inconsistencies with prior years, claims not matching information slips, first-time claims (e.g., first year claiming home office or moving expenses), high-risk categories (e.g., medical, child care, tuition, employment expenses), incomplete electronic submissions, or random quality-assurance selection. The goal is to protect the system—not to audit you fully.

Common Items CRA Reviews

• Medical expenses

• Childcare costs

• Tuition and education amounts

• RRSP contributions

• Spousal/common-law claims

• Home office expenses

• Moving expenses

• Disability tax credits (supporting documentation)

• Rent receipts (for Ontario/Quebec credits)

• Charitable donations

• Support payments
  Each item requires specific types of documentation.

How to Respond to a Pre-Assessment Review

1. Read the CRA Letter Carefully

Identify exactly what CRA is asking for. Do not send unnecessary documents.

2. Provide Complete Documentation

For each claim: receipts, invoices, statements, contracts, proof of payment, medical certificates, T2200 forms, or tax slips. CRA requires original-quality scans or copies.

3. Respond Before the Deadline

Late responses lead to denied claims and delayed refunds.

4. Organize Your Documents

Group by category, label clearly, and prepare a summary sheet if necessary.

5. Avoid Explanations Without Proof

CRA does not accept verbal or emotional explanations. Only documentation matters.

6. Keep a Copy of Everything Submitted

In case CRA loses documents or escalates the review.

7. Let a CPA Handle Communication

Professional structuring ensures clarity and prevents misinterpretation by CRA.

Documentation Tips for Common Claims

Medical Expenses

Receipts must show provider name, address, service description, date, and fee. Insurance reimbursements must be deducted.

Childcare Expenses

Provide invoices, receipts, SIN of caregiver (if applicable), and proof of payment.

Tuition Fees

T2202 or official tuition receipts required.

Moving Expenses

Lease agreements, purchase/sale documents, moving receipts, mileage logs, and proof the move was for work/school.

Home Office

T2200 or T2200S from employer, calculations of workspace percentage, utility bills.

Charitable Donations

Official donation receipts with CRA registration numbers.

What Happens if You Don’t Respond

CRA will: deny the claim, adjust your return, reduce your refund, or issue a balance owing. Your return may also be flagged for future audits.

If CRA Disagrees After Reviewing Your Documents

You may still dispute the denial by:

• Requesting a review with additional documents

• Filing a T1 Adjustment once you obtain missing documents

• Filing a Notice of Objection within 90 days if the assessment is incorrect
  Pre-assessment review decisions can be reversed with proper evidence.

When a Pre-Assessment Review Becomes a Full Audit

If your documents are incomplete, inconsistent, or reveal new issues, CRA may expand the scope. Clean, organized, complete submissions help prevent escalation.

Mackisen Strategy

At Mackisen CPA Montreal, we respond to pre-assessment reviews with clear, organized evidence packages. We review CRA requests, gather required documentation, prepare structured submission letters, correct errors proactively, and protect your refund. We also file objections if CRA incorrectly denies claims.

Real Client Experience

A Montreal teacher had her $2,800 tuition credit restored after submitting proper T2202s. A contractor reversed a denied home office deduction after we structured the supporting documents. A family recovered childcare expenses denied during review after we supplied additional proof. A retiree regained a medical credit once CRA received complete pharmacy statements.

Common Questions

Does a pre-assessment review mean I’m being audited? No—but it can lead to one if handled poorly. Can I ignore the letter? Never. Does CRA accept digital receipts? Yes. Can I still get my refund? Yes—after CRA completes the review.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal ensures pre-assessment reviews are handled correctly, preventing delays, denials, and unnecessary audits. We protect your refund and your rights through strong documentation and strategic communication.