The Canada Revenue Agency (CRA) generally processes online tax returns (NETFILE) within 2 weeks and paper returns in 8 weeks or more. If you have direct deposit set up, you may receive your refund faster, while non-resident returns can take up to 16 weeks. Due to high volume, some processing may take up to 10-12 weeks.
If you file online and have direct deposit set up, you'll also get a refund sooner. If you mail in a paper tax return, it can take 8 weeks or more for the CRA to process it. But keep in mind that these are average timeframes. Several factors can impact how fast your return gets processed.
If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
Your income tax and benefit return may be selected for review for a number of reasons, such as: the information on your return does not match the information received from third-party sources, such as T4 slips. the types of deductions or credits you claimed. your compliance history.
Note: Due to an increase in volume, it may take 10-12 weeks to process your request. Non-resident returns: Processed within 16 weeks. The CRA may take longer to process your return if it is selected for a more detailed review.
If you have not received your clearance certificate or a clearance certificate officer has not contacted you by the anticipated date indicated, please call the CRA's Individual tax enquiries line at 1-800-959-8281.
A “complex” tax return is anything that goes beyond the basics: a single W-2, a standard deduction, and maybe a little interest from your savings account. Once you start layering in multiple income streams, investments, or life changes, the complexity ramps up quickly.
Discrepancies between tax returns and bank statements
One of the most significant red flags for CRA auditors is the mismatch between reported income on tax returns and actual bank deposits. This discrepancy often indicates unreported income, which can trigger an immediate audit.
Processing your refund usually takes: Up to 21 days for an e-filed return. 6 weeks or more for returns sent by mail.
This generally requires a human to correct it.
Errors on or Incomplete Tax Returns: Your refund may be delayed for something as simple as a forgotten signature, mathematical errors or if the income reported by you doesn't match what your employer or other third-party payers have reported.
If your tax return is under review, the IRS is examining it to ensure that it is accurate and in accordance with tax laws. They're checking to confirm that all the information you provided is correct and that there are no mistakes or missing details that could affect your tax bill or refund.
Normal reassessment period
The CRA can usually reassess a return for a tax year: within three years of the date it sent the original notice of assessment for the tax year, if the corporation was a CCPC at the end of the year.
The IRS can usually assess tax, by law, within 3 years after your return was due, including extensions, or – if you filed late – within 3 years after we received your return, whichever is later. This time period is called the Assessment Statute Expiration Date (ASED).
There's no strict maximum limit for how long the IRS can hold a refund, but they must pay interest after 45 days; while most e-filed returns take 21 days, returns needing extra review for errors, fraud, or certain credits (like EITC/ACTC) can take months (45-180+ days), and amended returns can take 8-16 weeks, with unfiled returns having an indefinite delay until filed.
Why is my return being reviewed? We select some returns to review so we can determine whether income, expenses, and credits are reported correctly. This doesn't mean you made an error or were dishonest.
What should I do? Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
Individuals who are self-employed are, perhaps, the most audited. The CRA may review income declarations, expenses, deductions etc. In particular, individuals claiming large or unusual deductions have a higher chance of an audit.
Which Taxpayers the IRS Audits Most Often. Oddly, people who make less than $25,000 have a relatively high audit rate. This higher rate is because many of these taxpayers claim the earned income tax credit, and the IRS conducts many audits to ensure that the credit isn't being claimed fraudulently.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.