The Canada Revenue Agency (CRA) is sending out letters to COVID-19 aid recipients to verify that they were indeed eligible to receive payments throughout the pandemic.
The CRA is also warning that some recipients may potentially need to repay the agency.
This marks the second time the CRA is mailing Canada Emergency Response Benefit (CERB) recipients to verify the eligibility of Canadians who have received financial aid from the government since April 2020.
During the winter of 2020, the CRA sent out more than 440,000 letters to CERB recipients asking them to verify they met the eligibility rules.
The CRA says “thousands” of letters are being sent out across Canada this week, targeting recipients who may have earned more than $1,000 a month, which the government unintentionally allowed, since mid-April 2020.
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The agency says people who are receiving letters will have respective tax information that suggests they may have earned too much income during periods when the CERB was being distributed.
The CRA says it will work on “flexible repayment plans” for anyone who has to return the money and will not charge interest. The government says interest will be charged to recipients who ignore the letters.
If we’re writing to you, it’s likely important! Always open your CRA mail and take action. If you need help, contact us at the number provided in your letter. https://t.co/6elUF1nmFh #CdnTax pic.twitter.com/cvVzyyOJrs
— Canada Revenue Agency (@CanRevAgency) January 27, 2022
When the CERB was initially rolled out, the federal government only asked recipients to attest that they were eligible for financial aid. After its swift rollout, the Canadian government consistently claimed it would be reviewing cases to assure it wasn’t handing out wrongful payments.
From March to April 2020, upwards of three million jobs were lost across Canada. In total, the CERB handed out $81.64 billion to nearly nine million Canadians.
In November 2020, the government sent out letters asking CERB recipients if they had earned at least $5,000 in the 12-month period before the aid initiative began.
People who receive letters will have 45 days to contact the CRA before the agency decides which recipients owe money back to the federal government.
“You may receive a letter or phone call telling you your income tax and benefit return is being reviewed,” says the CRA. “In most cases it’s simply a routine check. It’s important that you reply and send all of the information requested as soon as possible. This will help us review your file quickly and easily.”
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