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The CRA can cancel or waive penalties and interest when events beyond your control kept you from filing or paying, when the CRA itself caused the delay or error, or when you cannot pay and the interest would cause hardship. It looks back 10 calendar years. You ask online or on Form RC4288, and the CRA says the average wait is about 16 months.
What are the taxpayer relief provisions?
The Canada Revenue Agency: Taxpayer relief provisions page explains that the CRA has discretion to cancel or waive penalties and interest, to accept certain late, amended or revoked elections, and to issue a refund or reduce tax payable beyond the normal 3-year period for an individual. This article covers the penalty and interest part. Relief is a request, not a right: the CRA says meeting the listed criteria does not guarantee it will be granted.
Who can get relief?
The Canada Revenue Agency: Who can apply for relief page groups the situations like this, and the Canada Revenue Agency: How to apply for relief page lists the paper that supports each one.
| Situation | Examples the CRA gives | Documents it suggests |
|---|---|---|
| Extraordinary circumstances | Flood or fire, service disruptions, serious illness or accident, serious emotional or mental distress | Death certificate or obituary; doctor’s letter with illness type, treatment length and onset and expected recovery dates; hospital dates; insurance statements and a fire or police report |
| Actions of the CRA | Processing delays, errors in CRA materials, incorrect information from the CRA, undue delays in an objection, appeal or audit | Your timeline, CRA letters, notes from phone calls |
| Inability to pay or financial hardship | Interest is a major part of the balance and no reasonable payment arrangement is possible | Income and expense statement such as Form RC376, mortgage statements, loan and bill records, 3 months of bank and credit card statements, investment statements |
| Other circumstances | Situations outside the categories above | A detailed description and any supporting documents |
For financial hardship, the CRA first has to confirm that you cannot pay what you owe. It may then waive or cancel interest in whole or in part so that you can pay the debt. For an individual, the test is whether paying the interest would make it difficult to provide basic necessities for a prolonged period.
How far back can you ask for relief?
There is a 10 calendar year limit, and it works differently for the two charges. For penalties, the CRA considers a request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year you make the request. For interest on a balance owing, it considers only the amounts that accrued during those 10 calendar years.
In our reading of that wording, a request made in 2026 reaches back to 2016, so penalties on a tax year ending in 2015 or earlier would be out of range, and interest that built up before 2016 would not count.
How do you apply?
- Online (individuals): sign in to My Account, go to “Accounts and payments” and select “Request relief of penalties and interest”. Businesses use My Business Account or Represent a client.
- By mail or courier: complete Form RC4288, Request for Taxpayer Relief, and send it to the designated office listed on the last page of the form for your place of residence.
Whichever way you apply, give your CRA account number (for an individual, your SIN) and the tax years involved. Describe your circumstances in detail and explain how they kept you from paying, filing or meeting another obligation on time. Add the documents from the table. The CRA does not state a deadline for submitting a request on its how-to-apply page, but the 10-year window above does the limiting.
How long does it take, and what happens meanwhile?
The CRA reports a significant rise in requests. Its Canada Revenue Agency: Check CRA processing times page, updated 20 October 2026, puts the average processing time at approximately 16 months, and your own request can take more or less depending on its complexity, the number of tax years and programs involved, and how complete your documents are. You can follow it in the Progress Tracker in My Account.
Interest keeps accruing during the review, and paying all or part of the balance reduces the interest charged. If the assessment is under objection (see our notice of objection guide) or appeal, a final decision on the relief request waits until that is resolved. If relief is approved, the CRA will generally refund the cancelled penalties and interest you paid, although the refund may be applied to other debts or held until you file overdue returns, per the Canada Revenue Agency: After you apply for relief page.
What if the CRA says no?
Ask for a second administrative review. You can do it online through “Submit your request” on the how-to-apply page or by letter to the address in your decision letter. Give your reasons for disagreeing and any new documents, facts or correspondence. None of the officials from the first review does the second one, and the CRA states no deadline for asking.
The next step is judicial review at the Federal Court. The Canada Revenue Agency: Judicial review page says you must apply within 30 days of the date you received the decision, and it recommends asking for the second review first. Because 30 days is short, read the dates in your decision letter as soon as it arrives.
What does a request look like in practice?
Sam was in hospital from February to June 2026 and filed the 2025 return late. A request in 2026 for the 2025 year sits well inside the 10-year window. Sam would submit it in My Account, describe how the illness kept the return from being filed, and attach a doctor’s letter giving the illness, the treatment length and the dates, plus the hospital dates. If the CRA denies it, Sam asks for the second review and sends any new letter from the doctor. If you owe more than you can pay at the same time, our guide on when you can’t pay the CRA covers payment arrangements, and the tax relief overview lists other kinds of relief.
What could change?
The processing time is the item most likely to move, because the CRA updates it as its backlog changes. The CRA also describes a new self-evaluation and learning tool on its relief page that can help you decide whether to apply. Check both before you file.
Where does this information come from?
Rules come from the Canada Revenue Agency pages Taxpayer relief provisions, Cancel or waive penalties and interest (Who can apply, How to apply, After you apply), Judicial review, and Check CRA processing times. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
When can the CRA cancel penalties and interest?
The CRA may grant relief when events beyond your control kept you from meeting a tax obligation, such as a serious illness, a fire or a service disruption. It may also act when its own delays or errors caused the charges, or when you cannot pay and the interest causes hardship. Relief is not guaranteed.
How far back can I ask for taxpayer relief?
For penalties, the request must relate to a tax year or fiscal period ending in any of the 10 calendar years before the year you make the request. For interest, the CRA considers only amounts that accrued during those 10 calendar years.
How do I apply for CRA taxpayer relief?
Individuals sign in to My Account, go to "Accounts and payments" and select "Request relief of penalties and interest". You can also mail Form RC4288 to the designated office for your area. Describe your circumstances in detail and include supporting documents and the tax years involved.
How long does a taxpayer relief request take?
The CRA says the current average processing time is approximately 16 months, and it may be shorter or longer depending on complexity, the number of tax years involved and how complete your documents are. You can track the request in the Progress Tracker in My Account.
What can I do if the CRA refuses my relief request?
Ask for a second administrative review, reviewed by someone not involved in the first. The CRA recommends doing this before going to court. To apply to the Federal Court for judicial review, you must do so within 30 days of the date you received the decision.
- Dealing with the CRA: letters, audits and payments
Dealing with the CRA: what to do when a letter arrives, how a review differs from an audit, how My Account helps, and what to do if you can't pay