--- title: "CRA Instalment Reminder: Ignore or Pay? | EverStone CPA" url: https://www.everstonecpa.com/cra-letter-instalment-reminder description: "An instalment reminder is a calculation, not always a bill you owe. Check when the amounts are right, when they are not, and what interest attaches to." type: service-or-info updated: 2026-10-02 faq_count: 4 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Resources](https://www.everstonecpa.com/resources) Instalment reminder CRA letters, decoded # An instalment reminder arrived. *Is it actually right?* Updated 2 October 2026 **Quick answer:** An [instalment reminder](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-payments.html) shows amounts the CRA calculated from your PAST filings: a proposed schedule, not an assessment. If this year’s income is lower, you may owe less or nothing; underpay what the year owes and instalment interest attaches. Use our [instalment calculator](https://www.everstonecpa.com/tax-instalment-calculator) and [instalments guide](https://www.everstonecpa.com/blog/corporate-tax-installments-canada) to project it. A reminder is not a bill, and paying one you did not owe is as avoidable as missing one you did. [Ask whether yours needs paying](https://www.everstonecpa.com/quick-question). The order to work through it in. ## What the reminder is, mechanically Instalments prepay a year’s tax during the year. The CRA bases reminders on prior-year figures because it cannot see your current year. So the reminder is neither ignorable nor automatically right: it is one allowed calculation option, on possibly outdated data. ## The three legitimate responses - **Pay as billed** — safe harbour: paying the reminder amounts on time protects you from instalment interest even if the year ends up owing more. - **Pay based on this year’s estimate** — allowed, and cheaper when income has dropped; but if the estimate proves low, interest applies to the shortfall. - **Pay nothing** — correct only when the year’s tax will fall under the instalment threshold. Guessing wrong here is the expensive version. ## What people get wrong Ignoring the reminder and paying it as an invoice are both mistakes. It is a forecast to correct by calculation. Ten minutes with the [calculator](https://www.everstonecpa.com/tax-instalment-calculator) and last year’s numbers tells you which of the three responses fits. A reminder is calculated from last year, not this one, which is why [planning that sets the instalment against real figures](https://www.everstonecpa.com/tax-services) usually changes the number you actually pay. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=other#enquiry-form)[Ask a Free Question](https://www.everstonecpa.com/quick-question) Fastest first step: email what you’re facing to info@everstonecpa.com — reply within one business day, and we take it from there by email. General information, not tax advice. The document in your hand and its own dates govern. ## Common questions about instalment reminder **Is an instalment reminder a bill I legally owe?** It is a schedule the CRA computed from prior filings. Paying those amounts on time is the safe harbour that prevents instalment interest, however the year lands. [Ask about your case →](https://www.everstonecpa.com/quick-question) **My income dropped this year. Do I still pay these amounts?** You may elect to pay based on the current year’s estimate instead — that is explicitly allowed. The risk sits on your estimate: undershoot and interest attaches to the difference. Run the projection before deciding, not after. **What happens if I just ignore it?** If the year ends up owing enough that instalments were required, instalment interest applies to what should have been paid through the year. If the year truly falls below the threshold, nothing happens. The letter is the prompt to find out which world you are in. **Can EverStone work this out with me?** Yes — email the reminder and your rough year-to-date picture to info@everstonecpa.com, and we will tell you which of the three responses fits before the first date on the schedule. ## Other CRA letters, decoded Not sure which letter you have? [Start with the full list](https://www.everstonecpa.com/cra-letters) and match what yours says. One letter often follows another. These cover the ones owner-managers see most. [A demand to file arrived. The clock is now formal.](https://www.everstonecpa.com/cra-letter-demand-to-file) [Never meet a CRA deadline by accident again](https://www.everstonecpa.com/deadline-reminders) [The CRA thinks you should be registered for GST/HST. Now what?](https://www.everstonecpa.com/cra-letter-gst-registration) [PIER report](https://www.everstonecpa.com/cra-letter-pier-report) [Personal return review](https://www.everstonecpa.com/cra-letter-t1-review) [T2 review](https://www.everstonecpa.com/cra-letter-t2-review) [CRA T4 Mismatch Letter: Slip vs Return](https://www.everstonecpa.com/cra-letter-t4-mismatch) ## Who this is for, and who it is not This is for an owner who received a reminder and wants to know whether to pay it. It is not for a corporation that has already missed instalments and accrued interest — [that is a different conversation](https://www.everstonecpa.com/cra-review-and-audit-support), and a faster one than most expect. ## What happens when you get in touch A reminder is not a bill, but it is a good moment to hand the calendar to someone else. This is how that starts. - **An email enquiry.** What you do, what is filed and what is overdue. You leave with a fixed fee in writing and no obligation to take it. - **Access, in the first week.** We are [authorized with the CRA](https://www.everstonecpa.com/forms/aut-01), so notices and balances get looked up rather than requested from you. If you are [switching firms](https://www.everstonecpa.com/switching-accountants), your file is requested the same week. - **Current, then ahead.** Books set up or brought current, anything overdue scheduled oldest year first, and the next twelve months of deadlines set before they arrive. [Send an enquiry](https://www.everstonecpa.com/book-online?service=other#enquiry-form), or [ask one question first](https://www.everstonecpa.com/quick-question) — both go to a CPA, not a queue. ## Email the reminder before the first due date A CPA reads it against your actual year and answers with a number, not a guess. Email us — info@everstonecpa.com[Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=other#enquiry-form) ★★★★★ “…We switched to him last year for both our personal and small-business taxes — responsive, knowledgeable and quick.” Heather Powers · Google review --- Source: https://www.everstonecpa.com/cra-letter-instalment-reminder Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online