CRA taxpayer relief: how to request relief of penalties and interest

CRA taxpayer relief (RC4288): how to request cancellation of penalties and interest

If you have CRA penalties and interest that feel impossible to get ahead of, taxpayer relief is the process where you can ask the CRA to cancel or waive penalties and interest when circumstances beyond your control prevented you from filing, paying, or meeting other tax obligations.

This post walks you through exactly what the CRA expects: what to write, what documents to include, and how to submit.

What taxpayer relief can do (and the key time limit)

The CRA says you must send your request within 10 years from the end of the calendar year or fiscal period involved.

Also, even if the underlying tax year is older, the CRA notes it may only be able to cancel penalties and interest that accrued within the allowable relief window tied to your request timing.

How to apply (CRA’s three-step approach)

1) Explain why you are requesting relief

The CRA is clear on what they want here: a detailed, complete, accurate description of your circumstances, and an explanation of how those circumstances prevented you from paying on time, filing on time, or otherwise meeting your obligations.

A practical way to write this section:

• What obligation(s) were missed (file, pay, remit, respond)

• Which tax years or fiscal periods are involved

• A simple timeline (dates matter)

• What happened (facts, not a novel)

• How it directly affected your ability to comply

• What you did once you could (steps you took to fix it)

• What you are asking for (cancel or waive penalties and interest, and for which periods)

Tip: Keep the tone calm and direct. Think “case summary,” not “life story.”

2) Gather the necessary documentation

CRA’s guidance is basically: your request is only as strong as the support you attach. Send all relevant information.

Include your CRA account details

The CRA asks for your basic account information, such as:

• Your account number or identifier (for example SIN, BN, partnership number, trust account number, or other CRA ID)

• The tax year(s) or fiscal period(s) involved

Include supporting documentation based on your situation

Below are examples CRA specifically mentions.

A) Financial hardship or inability to pay
CRA says individuals may need to include an income and expense statement, and notes Form RC376 as an example to provide full financial disclosure.

They also list supporting documents such as:

• Current mortgage statements, property assessments, rental agreements

• Loans and recurring bills

• Bank and credit card statements for the most recent 3 months

• Current investment statements

For businesses, CRA expects documentation that supports the business’s financial situation, and gives examples like:

• Statement of earnings (dividends, gross sales, interest, rental, other income)

• Statement of expenses (COGS, interest expense, operating expenses, other expenses)

• Balance sheet and details of assets and liabilities (including A/R lists, creditors, repayment terms, security, shareholder and related-party loans)

B) Extraordinary circumstances
CRA lists examples and what to include, such as:

• Death of a significant other or loved one: death certificate or obituary

• Serious illness, accident, emotional distress: doctor’s certificate or letter with illness type, treatment length, onset date, recovery date (or expected recovery), hospital dates, plus documents explaining effects on your ability to comply

• Natural or human-made disaster: insurance statements, fire or police report

• Civil disturbances or service disruptions: links or copies of news articles, service provider notices, police or fire reports

C) Actions of the CRA
If your request is based on CRA delay or error, CRA notes you may need to provide documents that explain the details and timelines, like CRA correspondence or notes of phone conversations.

D) Other circumstances
CRA’s approach is: provide a detailed description and any documents that support your claim.

3) Submit your request (online or by mail/courier)

Online submission

Individuals can submit through My Account or Represent a Client, under “Accounts and payments,” by selecting Request relief of penalties and interest.

For businesses, CRA indicates you can submit through My Business Account (or Represent a Client) by choosing the appropriate program (like GST/HST or income tax), selecting the correct account, then using the Request relief of penalties and interest service.

By mail or courier

CRA’s guidance includes completing Form RC4288 (and Form RC7288 for selected listed financial institutions in certain GST/HST or QST situations), then sending the form to the designated office shown on the form based on your place of residence.

What happens after you apply

If CRA approves your request in whole or in part, they will cancel the approved penalties and interest, and may refund amounts you already paid (subject to offsets if you have other debts or unfiled returns).

A simple “before you submit” checklist

• Your account identifiers (SIN or BN, plus any relevant program accounts)

• Tax years or fiscal periods clearly listed

• A clean timeline and explanation of how circumstances prevented compliance

• Supporting documents that match your reason category (hardship, illness, disaster, CRA actions, etc.)

• Submitted online, or RC4288 completed and mailed to the correct office