The Canada Revenue Agency (CRA) is increasingly shifting its communication practices toward online mail, making it the default method for delivering correspondence to taxpayers and businesses. This transition impacts how individuals and organizations manage their tax-related communications and will become even more critical in the years to come.
Why the Shift to Online Mail?
The move to online mail aligns with the CRA’s goals of improving efficiency, enhancing data security, and streamlining tax-related processes. This method ensures that important notices, letters, and forms are delivered promptly and securely through CRA’s online portals—My Account for individuals and My Business Account for businesses.
This transition also has broader implications for audit processes and ongoing interactions with the CRA, particularly during situations like postal strikes, when reliance on online communication becomes essential.
Key Implications for Taxpayers and Businesses
Immediate Considerations for Taxpayers
- Deemed Receipt: Any correspondence posted to your CRA account is considered received the moment it appears. If your email address isn’t up to date, you may not get notifications in time.
- Frequent Monitoring: To avoid missing critical updates or requests, check your CRA account at least weekly, especially if you’re under audit, review, or have other ongoing matters with the CRA.
What Businesses Need to Know About 2025 Changes
Starting in Spring 2025, online mail will become the default for most business correspondence. This includes new businesses registering for a Business Number or program accounts and existing businesses using the My Business Account portal.
Exceptions include certain groups, like charities, non-resident businesses, or those not registered for online services, who will continue receiving paper mail unless they opt for online correspondence.
Businesses that want to continue to also receive paper mail, must make a request before May of 2025, but then must also ensure that they keep CRA apprised of any change to their mailing address. This request can be made via My Business Account or by completing new form RC681 and submitting it to CRA by mail or fax.
Preparing for the Transition
To ensure a seamless transition to CRA’s online mail system:
For Individuals and Businesses
- Regularly log in to your CRA online account to check for new mail.
- Update your email address with CRA to ensure you receive timely notifications.
- Set up reminders or delegate the task of account monitoring to a trusted tax advisor, accountant, or bookkeeper.
Additional Steps for Businesses
- Register for My Business Account if you haven’t already.
- Add up to three email addresses per program account for authorized representatives, accountants, or other personnel.
- Be aware that starting in May 2025, you can request to continue receiving paper mail by selecting the option in My Business Account or submitting Form RC681 – Request to Activate Paper Mail for Business.
Why It Matters
Missing an online notification could lead to significant consequences, such as interest, penalties, or large, unexpected tax assessments. For businesses, efficient monitoring of the My Business Account portal will become an operational necessity starting in 2025. During the recent postal disruption, we have witnessed examples of some clients failing to review and respond to CRA online mail regarding collections and audit enquiries that resulted in significant financial surprises for these clients.
At LCA CPA LLP, we specialize in guiding individuals and businesses through complex tax matters, including CRA audits and compliance. Our team can help you set up systems to manage online mail effectively and ensure your tax matters are handled with professionalism and care.
Contact your LCA advisor to navigate this transition confidently.