Online Mail for Business - A New Development!

Ruth Horst

On November 14, 2024, the Canada Revenue Agency (CRA) announced that as of the spring of 2025, it would transition to online mail as the default method for delivering most business correspondence via My Business Account. Traditional mail delivery would be discontinued. This announcement was the only communication provided to business owners; no individual or personalized notifications were issued. This poses challenges to business owners and the financial professionals they work with.

According to the CRA, the rationale behind the change was to enhance service delivery by making it faster, easier, and more secure for businesses to manage their tax obligations online. The switch to online mail applies to all newly registered businesses, existing businesses enrolled in My Business Account, and those with authorized representatives using the CRA’s services through Represent a Client (RAC).

The announcement indicated that businesses could opt out of online mail by submitting Form RC681 starting in May 2025.

The Problem: There are several issues associated with the forced transition to online mail. While many business owners are capable of running successful businesses, they may lack the skills or resources for digital communication. Some are registered with the CRA solely to remit GST/HST or payroll deductions, and may not even own a computer themselves. Additionally, the rise in online scams and data breaches involving the CRA has made many business owners hesitant to trust email notifications.

Business owners often rely on their accountants to handle communications with the CRA and grant them access to their business accounts through RAC. However, accountants are typically busy and may not have the capacity to regularly monitor the CRA accounts of all their clients.

The Latest Development: In its November 2024 announcement, the CRA stated that businesses would have the opportunity to opt out of online mail starting in May 2025. However, Form RC681—required to opt out—was not made available until May 12, 2025. To request paper mail delivery, a business owner must either select paper mail as the preferred delivery method in My Business Account or complete Form RC681 and mail it to their Tax Centre. Notably, representatives using the CRA's services through RAC cannot access the option to select paper mail or submit the form electronically on behalf of their clients.

Form RC681 must be signed by the business owner or by an individual with signing authority for a corporation or non-profit organization. The name on the form must match the CRA’s records exactly, or the form will not be processed. Submitting Form RC681 will update the delivery method for all program accounts, as updates to individual accounts must be made online. Additionally, the CRA requires that the most current version of the form be used; outdated versions will not be accepted.

Form RC681 also requires the business owner to acknowledge that:

• If the CRA receives any returned mail, the business may be switched back to online mail.
• The opt-out request is valid for only two years from the date it is processed, after which a new application must be submitted.
• No confirmation will be sent to indicate that the request has been processed.

The CRA will accept Form RC681 up to six months after the date it is signed; however, it has not specified how long processing will take. This lack of clarity may cause confusion, as businesses will be automatically switched to online mail starting June 16. Consequently, many business owners may miss important correspondence. For example, if the CRA takes 90 business days to process a request submitted on May 28, the request will not be processed until early October. Any correspondence sent during this processing period may go unnoticed; as it is unlikely the CRA will reissue it in paper format once the form is processed.

The Bottom Line: Each business owner must decide which option best suits their needs. While the traditional advantages of paper mail may have diminished due to significant postal disruptions over the past year, switching to digital mail also presents challenges, such as unreliable internet connections and the various issues currently affecting the CRA’s digital platforms. Contact your Tax Advisor or Accountant to discuss the advantages and disadvantages for your specific situation and never assume that they will monitor your digital account year-round.