CRA Reassessment After Filing (2026): Why Your Refund Dropped & How to Dispute It

Getting a Notice of Reassessment from the Canada Revenue Agency (CRA) can be surprising. It means the CRA has reviewed your tax return again and made changes that can affect your refund or amount owing. Understanding the reasons behind a reassessment and knowing how to dispute it can help you protect your refund and your rights.

What Is a CRA Reassessment?

After you file your tax return, the CRA issues a Notice of Assessment showing their calculation of your tax position. If the CRA later reviews that return more carefully, they may issue a Notice of Reassessment, which changes the original amounts — including income, credits, deductions, or refund. This can result in a reduced refund or an amount owing. :contentReference[oaicite:0]{index=0}

Why Your Refund Dropped

There are several common reasons the CRA might reassess your return and reduce your refund: :contentReference[oaicite:1]{index=1}

• Incorrect income reporting – If your reported income doesn’t match T-slips or employer records.
• Misclaimed deductions or credits – Claiming deductions you can’t support may be adjusted.
• Missing information – Receipts or forms you forgot to attach or upload.
• Random or targeted review – Some returns are selected for extra review or audit.

Understanding the Notice of Reassessment

Your Notice of Reassessment includes a breakdown of the changes the CRA made. Always check:

• What line items were changed
• The explanation provided by the CRA
• Whether your credits or deductions were altered
• Any additional tax, interest, or adjustments applied

If you’re unsure why the CRA made changes, review the detailed explanation on the notice and compare it with your original return. :contentReference[oaicite:2]{index=2}

How to Dispute a CRA Reassessment (Step-by-Step)

If you believe your reassessment is incorrect, you have the legal right to dispute it. The process involves several steps: :contentReference[oaicite:3]{index=3}

1. Talk to CRA first
   Call the number on your Notice of Reassessment to ask for clarification — many issues are resolved with an explanation.
2. File a Notice of Objection
   You have 90 days from the date of the reassessment to file a formal objection. This can be done online or by mail. :contentReference[oaicite:4]{index=4}
3. Prepare supporting documents
   Include all evidence showing why your original return was correct — slips, receipts, and explanations.
4. CRA Appeals Review
   Once your objection is filed, it will be reviewed impartially by the CRA Appeals division. :contentReference[oaicite:5]{index=5}
5. Consider Tax Court if needed
   If you disagree with the decision on your objection, you can appeal to the Tax Court of Canada within the permitted time frame. :contentReference[oaicite:6]{index=6}

Tips to Improve Your Dispute Success

• Respond quickly — don’t wait for deadlines to pass.
• Be clear and factual in your objection paperwork.
• Keep all correspondence with the CRA documented.
• Consult a tax professional if the dispute is complex.

Common Mistakes to Avoid

• Missing the 90-day objection deadline
• Not including evidence or explanations with your objection
• Assuming CRA is always correct — you have rights too

Frequently Asked Questions

Can the CRA reduce a refund if I made an honest mistake?

Yes — if the CRA finds missing or incorrect information, your refund may be reduced accordingly.

Do I have to pay while I dispute?

Generally, you don’t have to pay the disputed amount while the objection is under review. :contentReference[oaicite:7]{index=7}

How long does a dispute take?

Processing times vary. Objections can take several months, and complex cases may take longer. :contentReference[oaicite:8]{index=8}

Sources

• Canada Revenue Agency – Resolving disputes & filing objections
• CRA official info on objection rights and appeal processes
• Professional tax guidance on CRA reassessments