---
title: How to Request Interest and Penalty Relief from the CRA
description: Learn how to request interest and penalty relief from the CRA with our step-by-step guide, including eligibility criteria and best practices for approval.
---

[Toro Accounting Blog](https://toroaccounting.ca/blog)

# [How to Request Interest and Penalty Relief from the CRA](https://toroaccounting.ca/blog/cra-penalty-relief)

 Written by [Camilo Toro](https://toroaccounting.ca/blog/author/camilo-toro) | May 4, 2026 10:21:12 PM

 If the Canada Revenue Agency (CRA) has charged interest or penalties on your account, you may be able to request relief under the **Taxpayer Relief Provisions**. This applies to both **individual (T1)** and **business accounts (T2, GST/HST, payroll, etc.)**. 

This guide explains:

- How to **identify interest and penalties**
- Who qualifies
- Step-by-step **how to apply (latest CRA process)**
- What to include to improve approval chances

# 1. What Is CRA Interest and Penalty Relief?

The CRA has discretion to **cancel or waive interest and penalties** when taxpayers could not meet obligations due to circumstances beyond their control.

Important:

- Relief applies to **interest and penalties only (not the tax owing)**
- Requests must be within the **last 10 years**
- Each request is reviewed **case-by-case**

# 2. How to See Interest and Penalties (Personal & Business)

## A. Personal (T1) – CRA My Account

1. Log in to CRA My Account
2. Go to: 
     - “Accounts and payments”
     - “View mail” or “Statements of account”
3. Look for: 
     - **Arrears interest**
     - **Late-filing penalty**
     - **Instalment interest/penalties**

You can also review:

- Notice of Assessment (NOA)
- Reassessment letters

## B. Business Accounts – CRA My Business Account

1. Log in to CRA My Business Account
2. Select the program account: 
     - RC (corporate tax)
     - RT (GST/HST)
     - RP (payroll)
3. Go to: 
     - “View and pay account balance”
     - “View transactions”

You’ll see:

- Interest charged daily
- Penalty assessments
- Running balance

📌 Key point:  
CRA interest is **compounded daily** and applied to unpaid balances and penalties.

# 3. When Can You Qualify for Relief?

Common accepted reasons:

### 1. Extraordinary circumstances

- Serious illness or accident
- Death in the family
- Natural disasters

### 2. CRA errors or delays

- Incorrect advice
- Processing delays

### 3. Financial hardship

- Unable to pay basic living expenses

### 4. Other exceptional situations

- Postal disruptions
- Unavoidable delays

You must clearly show **how the situation prevented compliance** (filing or payment).

# 4. Step-by-Step: How to Apply 

## Option 1 (Recommended): Online via CRA Portal

You or your representative can submit directly through:

- CRA My Account (individual)
- CRA My Business Account (business)
- Represent a Client

Steps:

1. Go to **“Request relief of penalties and interest”**
2. Start to complete the form
3. Answer the preliminary questions:
4. Enter request information:
5. Complete the request form with the information and options that best describes the situation.
6. Upload supporting documents

This is the fastest method.

## Option 2: Submit Form RC4288

Use:

- RC4288 Taxpayer Relief Request: [RC4288 Taxpayer Relief Request - Cancel or Waive Penalties and Interest - Canada.ca](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc4288.html) 

Steps:

1. Complete the form
2. Attach supporting documents
3. Submit: 
     - Online via CRA “Submit Documents”, or
     - Mail to CRA intake center

# 5. What to Include in Your Request

Your submission must be **clear, detailed, and supported**.

### Required information:

- SIN or Business Number
- Tax year(s) or reporting period(s)
- Description of events

### Supporting documents (examples):

- Medical records
- Death certificate
- Insurance claims
- CRA correspondence
- Financial statements (for hardship cases)
- Bank statements (last 3 months)

CRA expects **full disclosure of your situation**.

# 6. Best Practices to Improve Approval

From experience, approvals depend heavily on **how the request is written**:

### Do:

- Clearly connect the event → inability to comply
- Use timelines (dates matter)
- Include proof for every claim
- Be concise but complete

### Avoid:

- Saying “I forgot” or “I was busy”
- Submitting without documentation
- Requesting relief for very old periods (>10 years)

# 7. What Happens After You Apply?

- CRA reviews your request
- Processing time varies (often several months)
- If approved: 
    - Interest/penalties are reduced or removed
- If denied: 
    - You can request a **second review**

# 8. Key Limitations to Know

- CRA **cannot cancel the tax itself**
- Not all penalties qualify
- Relief is limited to the **10-year window**
- Financial hardship alone is **not always enough**

# 9. Practical Example

**Scenario:**  
A client files late due to hospitalization.

**Strong request includes:**

- Hospital admission/discharge dates
- Explanation of inability to manage finances
- Timeline showing missed deadline
- Supporting medical documents

Result: High chance of partial or full relief.

# Final Thoughts

CRA interest and penalty relief is **discretionary**, but when done correctly, it can significantly reduce a client’s balance.

The key is:  
👉 Strong documentation  
👉 Clear explanation  
👉 Proper submission through CRA portals

 

[View full post](https://toroaccounting.ca/blog/cra-penalty-relief)

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