CRA Form RC4288: How to Request Penalty and Interest Relief

What Is CRA Form RC4288?

Form RC4288 – Taxpayer Relief Request is used to ask the Canada Revenue Agency (CRA) to cancel or waive eligible penalties and interest under the taxpayer relief provisions.

Taxpayer relief is discretionary. Filing Form RC4288 does not automatically entitle a taxpayer to relief, and the CRA considers each request based on the facts and supporting evidence provided.

For legal assistance with a taxpayer relief request, visit our CRA penalty and interest relief lawyers page.

You can access the current CRA form here: RC4288 – Taxpayer Relief Request.

What Can Form RC4288 Provide Relief From?

Form RC4288 may be used to request cancellation or waiver of certain CRA penalties and interest.

Depending on the circumstances, a request may involve:

Late-filing penalties;
Interest on unpaid tax balances;
Certain remittance-related penalties;
Penalties resulting from events beyond the taxpayer’s control;
Interest or penalties resulting from certain CRA actions or delays; or
Other eligible amounts that fall within the taxpayer relief provisions.

Taxpayer relief generally does not eliminate the underlying principal tax that was validly assessed.

If you are challenging whether the tax itself was assessed correctly, a different process may be required, such as a CRA Notice of Objection.

Who Can Request CRA Taxpayer Relief?

Individuals, businesses, corporations, trusts, and other taxpayers may be able to request relief where eligible penalties or interest arose because of circumstances that justify the CRA exercising its discretion.

The CRA generally considers several broad categories of circumstances.

Extraordinary Circumstances

Relief may be considered where events beyond the taxpayer’s control prevented them from meeting their tax obligations.

Examples may include:

Natural or human-made disasters;
Serious illness or accident;
Death in the immediate family;
Serious emotional or mental distress;
Civil disturbances or significant service disruptions; or
Other comparable circumstances beyond the taxpayer’s control.

Actions or Delays by the CRA

The CRA may consider relief where penalties or interest resulted from its own actions.

Examples may include:

Unreasonable processing delays;
Errors in CRA information or publications;
Incorrect information provided by the CRA;
Errors in processing;
Delays in providing information needed to meet a tax obligation;
Undue delays in completing an audit; or
Undue delays in resolving an objection or appeal.

Financial Hardship

Financial hardship may support a request for interest relief in appropriate cases.

For individuals, the CRA may consider whether paying the interest would make it difficult to provide basic necessities such as food, shelter, medical care, or transportation for a prolonged period.

For businesses, the CRA may consider whether paying the interest would seriously jeopardize continued business operations, employees’ jobs, or the welfare of the community.

Financial hardship does not automatically result in relief. Detailed financial information may be required.

Errors by an Accountant or Other Representative

Taxpayers are generally responsible for errors or delays made by their accountant, tax preparer, lawyer, or other representative.

However, the CRA may consider relief in exceptional situations involving a representative or third party, particularly where circumstances outside the taxpayer’s control prevented compliance.

A request based primarily on professional error should therefore be reviewed carefully before being submitted.

For official CRA guidance on circumstances that may qualify, see Who Can Apply for Penalty and Interest Relief.

Is There a Time Limit for Taxpayer Relief?

Yes. Taxpayer relief is subject to statutory time limits.

For penalties, the CRA generally considers relief only for a tax year or fiscal period ending within the 10 calendar years before the year in which the request is made.

Interest relief is also subject to the applicable 10-year limitation rules.

Because these rules can prevent relief for older periods, taxpayers should not delay unnecessarily in reviewing their eligibility.

How to Complete Form RC4288

A strong taxpayer relief request should do more than simply state that the penalties or interest are unfair.

The request should clearly explain what happened, why the taxpayer was unable to comply, how the circumstances affected the tax obligation, and what evidence supports the request.

Step 1: Identify the Taxpayer

Provide the identifying information requested on the current RC4288 form.

Depending on the taxpayer, this may include:

Name;
Social Insurance Number;
Business Number;
Trust account number;
Address and contact information; and
Information about an authorized representative, if applicable.

Step 2: Identify the Tax Periods and Amounts

Clearly identify the tax years, fiscal periods, reporting periods, penalties, or interest for which relief is being requested.

A taxpayer should avoid making an unnecessarily vague request. The CRA should be able to determine which amounts and periods are being addressed.

Step 3: Explain the Circumstances

The explanation is one of the most important parts of the request.

It should generally address:

What happened;
When the circumstances began and ended;
How those circumstances prevented or delayed compliance;
What steps the taxpayer took once the circumstances permitted;
The taxpayer’s compliance history where relevant; and
Why relief is appropriate in the circumstances.

A clear chronology can be particularly useful where events occurred over an extended period.

Step 4: Provide Supporting Evidence

The documents required depend on the basis of the request.

Supporting evidence may include:

Medical documentation;
Hospital or treatment records;
Insurance documentation;
Death certificates or related records;
Correspondence with the CRA;
Proof of CRA delays or errors;
Financial statements;
Income and expense information;
Bank statements;
Evidence of payment attempts or payment arrangements; and
Other records directly supporting the circumstances described.

Step 5: Submit the Request

Taxpayer relief requests may be submitted using the methods currently accepted by the CRA, including electronic submission where available or submission of Form RC4288 in accordance with CRA instructions.

Taxpayers should use the current CRA submission instructions rather than relying on an older mailing address or filing method.

Keep a complete copy of the request and all supporting documents.

How Long Does CRA Taxpayer Relief Take?

Taxpayer relief requests can take a significant amount of time to process.

The CRA is currently reporting an average processing time of approximately 16 months for requests to cancel or waive penalties and interest.

Actual processing times can vary depending on the complexity of the request, the evidence submitted, CRA workloads, and whether additional information is required.

For current information, see the CRA’s Penalty and Interest Relief page.

Does Filing RC4288 Stop CRA Collections?

No. Filing a taxpayer relief request does not, by itself, stop collection action on an outstanding CRA balance.

If tax remains unpaid, interest may continue to accrue unless and until relief is granted or another rule applies.

Making payments toward the outstanding balance can reduce the amount of additional interest that accumulates and does not prevent a taxpayer from requesting relief.

If you are facing active collection action, visit our CRA collections and tax debt lawyers page.

What Happens After You Submit Form RC4288?

The CRA reviews the information and supporting documents provided with the taxpayer relief request.

The CRA may also contact the taxpayer or representative if additional information is required.

After completing its review, the CRA will generally issue a written decision.

The request may be:

Approved;
Partially approved; or
Denied.

Because taxpayer relief is discretionary, the CRA’s decision should address whether the circumstances justify cancelling or waiving the requested penalties or interest.

What If the CRA Denies the Taxpayer Relief Request?

A taxpayer who disagrees with the CRA’s first taxpayer relief decision may request a second administrative review.

The second review is conducted by CRA officials who were not involved in the first review.

A second-review request should explain why the taxpayer believes the original decision was not fair and reasonable or why the CRA did not properly exercise its discretion.

It may also include:

Information that was overlooked;
Facts that were misunderstood;
Additional context;
New supporting documentation; or
Other reasons the original decision should be reconsidered.

Can You Appeal a Taxpayer Relief Decision to the Tax Court?

Not through the ordinary Tax Court appeal process.

A taxpayer relief decision is an exercise of administrative discretion rather than an assessment that is ordinarily challenged through a Notice of Objection and Tax Court appeal.

If the taxpayer remains dissatisfied after the second administrative review, the decision may instead be challenged through an application for judicial review in the Federal Court.

The Federal Court generally reviews whether the CRA’s discretionary decision was reasonable and procedurally fair. It does not simply reconsider the taxpayer relief request from the beginning or substitute its own preferred outcome.

Learn more about our judicial review of CRA decisions services.

What Is the Deadline for Judicial Review?

Where judicial review is available after the CRA’s second administrative review, the application generally must be filed in the Federal Court within 30 days after the taxpayer receives the second-review decision.

Because this deadline is short, a denied second-review decision should be assessed promptly.

What Is the Difference Between Taxpayer Relief and a Notice of Objection?

These processes address different issues.

A Notice of Objection generally challenges whether an assessment or reassessment is legally or factually correct.

A taxpayer relief request generally asks the CRA to exercise discretion to cancel or waive eligible penalties or interest because of circumstances such as extraordinary events, financial hardship, or CRA actions.

For example, if the CRA assessed income that you say was never earned, the proper dispute may be a Notice of Objection. If the underlying tax is correct but substantial interest accumulated because of extraordinary circumstances, taxpayer relief may be more appropriate.

For more information about formal assessment disputes, see our Notice of Objection (T400A) guide.

Is Taxpayer Relief the Same as a CRA Remission Order?

No.

Taxpayer relief and remission are separate forms of relief.

Taxpayer relief generally concerns eligible penalties and interest under specific tax legislation.

Remission is an extraordinary remedy that may provide relief from tax, penalties, interest, or other amounts in exceptional circumstances where other available remedies do not adequately address the situation.

Remission is generally considered a last-resort remedy.

Learn more about our CRA remission order services.

How Our Tax Lawyers Assist With RC4288 Applications

Assess whether taxpayer relief is the appropriate remedy;
Identify the penalties, interest, tax years, and periods involved;
Review applicable limitation periods;
Develop a factual chronology explaining the circumstances;
Identify supporting documents and evidence;
Prepare written taxpayer relief submissions;
Respond to CRA requests for additional information;
Prepare second administrative review requests where appropriate;
Advise on judicial review following a denied second review; and
Coordinate related CRA collection or tax dispute matters.

Frequently Asked Questions About Form RC4288

What is Form RC4288 used for?

Form RC4288 is used to request cancellation or waiver of eligible CRA penalties and interest under the taxpayer relief provisions.

Can RC4288 eliminate the tax I owe?

Generally, no. Taxpayer relief ordinarily concerns eligible penalties and interest, not principal tax that was validly assessed.

Can financial hardship qualify for relief?

Potentially. Financial hardship can be relevant, particularly to interest relief, but the CRA may require detailed financial information to assess the taxpayer’s ability to pay and overall circumstances.

Can my accountant’s mistake qualify for taxpayer relief?

Not automatically. Taxpayers are generally responsible for errors or delays caused by their representatives. Exceptional circumstances involving a representative or third party may nevertheless be considered depending on the facts.

How long does an RC4288 request take?

The CRA currently reports an average processing time of approximately 16 months, although individual cases may take more or less time.

Does filing RC4288 stop CRA collections?

No. Filing a taxpayer relief request does not automatically suspend collection activity or stop interest from accruing.

What can I do if CRA denies my request?

You may request a second administrative review. If you remain dissatisfied after the second review, you may be able to apply to the Federal Court for judicial review, generally within 30 days of receiving the second-review decision.

Speak With a Tax Lawyer About CRA Taxpayer Relief

If CRA penalties or interest have accumulated because of extraordinary circumstances, financial hardship, CRA delays, or other significant circumstances, KR Law Firm can assess whether taxpayer relief may be available.

Our tax lawyers assist with RC4288 applications, supporting submissions, second administrative reviews, and related Federal Court proceedings.

Book a Free Consultation with one of our tax lawyers to discuss your taxpayer relief request.