Navigating Mail Disruptions And CRA's Digital Shift: Everything You Need To Know

The Canada Revenue Agency (CRA) has begun an initiative to migrate to online mail as the default method of delivering most business correspondences. The timing of this new initiative is opportune given the ongoing labour dispute between Canada Post and the Canadian Union of Postal Workers (CUPW), and Canadian taxpayers facing renewed concerns about potential disruptions to mail service.

With the outcome of Canada Post negotiations unknown, relying solely on physical mail can increase risk for taxpayers. Discover how mail delays can impact access to important tax information, solutions to reduce risk and best practices for digital correspondence with the CRA.

How will mail disruptions affect taxpayers?

Postal disruptions can lead to increased processing times for important CRA documents, such as notices of assessment and reassessment, benefit notices, instalment reminders, adjustment notices and requests for documentation. Payments to and from the CRA by cheque may also be affected by mail disruptions. As the CRA does not typically resend notices that are delayed or lost in the mail, uninterrupted access is key to receiving timely notices and payments from the CRA.

Mail delays can also impact the delivery of tax-related documents from non-CRA entities, such as charitable donation receipts and tax slips required for filing.

Go digital with the CRA

Fortunately, taxpayers can eliminate risks associated with physical mail by registering for secure digital correspondence with the CRA. My Account enables individuals to view tax returns, assess refunds and benefits and manage personal information and banking details, whereas My Business Account allows businesses to file and view tax returns, manage business information and access program accounts.

CRA digital mail delivery for businesses

To improve service delivery, the CRA is transitioning to online mail as the default delivery method for most business correspondence. New and existing businesses, as well as businesses signed up for Represent a Client, will start receiving digital mail automatically through My Business Account as follows:

• Effective May 12, 2025, newly registered business numbers and program accounts will be opted in to digital mail delivery by default.

• Effective June 16, 2025, existing businesses already registered for My Business Account will be switched to digital mail delivery.

These changes do not apply to charities and non-resident businesses who do not have an authorized representative or Canadian-resident owner or director.

Businesses—including those non-resident to Canada—whose representatives (e.g., an accountant or lawyer) have authority to view and/or modify online information on their behalf via Represent a Client will also be swapped to digital mail. This is particularly concerning for non-resident businesses who may not have access to their My Business Account due to not meeting the registration requirements.

Businesses wishing to opt out of digital correspondence must submit a request either through My Business Account or by mailing a form RC681 – Request to Activate Paper Mail for my Business. This request must be made again every two years.

Checklist: Best practices for digital communications

While labour disputes at Canada Post continue, taxpayers should take prompt action to strengthen their digital communication strategy with the CRA. Best practices are as follows:

1. Register for My Account or My Business Account.
2. Set up direct deposit to receive timely payments.
3. Enable email notifications to receive alerts when new correspondence is available.
4. Check accounts regularly to avoid missing time-sensitive requests or notices.
5. For businesses, assign highest-level account access to at least two individuals to ensure continuity in case one individual is unavailable.
6. Keep digital records of expected payments and correspondence.

Benefits of switching to digital communication with the CRA include:

• faster access to notices and refunds

• reduced risk of missed deadlines

• improved ability to track and manage correspondence

What happens if mail delays cause missed deadlines?

Taxpayers that fail to submit returns or documents by the given deadline could be subject to penalties and interest. While late filers may be eligible to apply for taxpayer relief on grounds of postal disruptions, this form of relief is not automatic and must be formally requested by the taxpayer.

In the case that labour negotiations persist or escalate, the government may introduce temporary relief measures. For example, due to the 2024 mail interruption, the Department of Finance proposed to extend the deadline for eligible charitable donations to Feb. 28, 2025. Additionally, a negotiated agreement ensured that Canada Child Benefit (CCB) cheques continued to be delivered, while other benefit and refund cheques were produced but held securely by the CRA until mail service resumed.

However, it is important to note that such relief is not guaranteed, and taxpayers should consult their tax advisor early if delays are expected.

Takeaways

The situation at Canada Post remains uncertain—as negotiations unfold, potential outcomes include resolution of the labour dispute, prolonged job action or escalation to a full strike.

In today's rapidly evolving technological landscape, reliance on traditional mail for tax correspondence presents growing risks. Taxpayers can mitigate the impact of mail interruptions by adopting digital best practices with the CRA via My Account and My Business Account. Regardless of the outcome, the Canada Post dispute serves as a timely reminder to review your tax communication processes and ensure that you or your business are digitally prepared.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.