CRA Drop Boxes Close May 29 as Reviews Shift Year-Round

The Canada Revenue Agency (CRA) confirmed that all 45 drop boxes across Canada will permanently close after May 29, 2026. Starting in April 2026, the CRA will conduct post-assessment reviews of individual returns year-round rather than in concentrated seasonal cycles. For the roughly one million Americans and dual citizens filing in Canada, both changes affect the CRA side of cross-border filing. Your U.S. obligations have not changed, but how and when you submit on the Canadian side has, and the odds of receiving a CRA review letter after your refund has already landed have gone up.

What Happened?

The CRA Confirmed Drop Boxes Close After May 29, 2026

On May 8, 2026, the CRA published a tax tip confirming that all 45 drop box locations across Canada will close after the 2026 tax filing season. Signage will be posted at each location on May 1, 2026, and the final cutoff will be on May 29, 2026.

The agency cited three reasons: a 78% decline in drop box submissions between 2018-2019 and 2024-2025 (from nearly 2 million items down to roughly 430,000), longer processing times compared with electronic submission, and security risks tied to break-ins, vandalism, and suspicious packages.

After May 29, paper documents must be sent through Canada Post (5,700+ post offices), filed electronically through NETFILE-certified software, or submitted through CRA My Account.

CRA Post-Assessment Reviews Are Now Year-Round

Effective April 2026, the CRA shifted from concentrated seasonal review cycles to year-round post-assessment reviews of individual income tax and benefit returns. A post-assessment review is not a full audit. It is a targeted verification, typically focused on one credit or deduction (medical expenses, charitable donations, child care expenses, foreign tax credits, and similar items), that can arrive months after your Notice of Assessment is issued.

Per the CRA’s own guidance on responding, taxpayers selected for review have 30 days to submit the requested documents. Refunds may be paused while the review is in progress. If documents are not submitted within the window, the CRA will adjust the return based on the information it already has, which usually means disallowing the claim under review.

Who This Affects

U.S. citizens and Green Card holders living in Canada who file a CRA T1 return alongside a U.S. Form 1040.
Dual U.S.-Canadian citizens filing in both countries every year.
Americans in Canada who have historically used drop boxes to submit paper returns, T1 adjustments, or supporting documents in person.
Cross-border filers who claim the U.S. Foreign Tax Credit based on Canadian taxes paid, and whose Form 1116 calculation depends on the final CRA assessment.

What It Means for Americans in Canada

Your U.S. obligations have not changed. As a U.S. citizen or Green Card holder, you still file a U.S. Form 1040 every year, you still report worldwide income, and you still file FBAR (FinCEN Form 114) if your Canadian accounts (including RRSPs and TFSAs) exceed $10,000 USD in aggregate at any point during the year. The automatic June 15 expat filing extension remains in place, and any U.S. tax owed is still due April 15. The 2025 FEIE limit is $130,000, and the 2026 limit is $132,900.

Drop box closures mean longer lead times for paper CRA filings. If you have been dropping off paper T1 returns, payments, or CRA correspondence in person, build extra time into your Canadian filing workflow after May 29. The simplest replacement is NETFILE-certified software or CRA My Account; the paper-mail fallback is any Canada Post location.

Year-round reviews change how long you need to keep records active. A CRA review can land at any point in the year, well after you have received and spent your refund. If you claim a Foreign Tax Credit on Form 1116 based on Canadian taxes paid, a CRA reassessment that changes your Canadian tax owing changes the amount of Canadian tax you can credit against your U.S. liability, which usually means an amended U.S. return for the affected year. Keep digital copies of receipts, T-slips, and supporting documents for at least six years.

What You Should Do Next

Submit any in-person CRA filings before May 29, 2026. If you have a paper T1 return, payment, or T1 adjustment request waiting on your desk, drop it off before the deadline or switch immediately to NETFILE or CRA My Account.
Keep digital copies of receipts and T-slips year-round. Save medical, charitable, child care, and foreign tax credit documentation in a single folder you can pull from on short notice if a CRA review letter arrives months after your assessment.
Loop in your U.S. preparer before responding to any CRA reassessment. A change to your Canadian tax owing can flow through to your U.S. Foreign Tax Credit and may require an amended Form 1040. Coordinate the two filings before you commit to a number on either side.

A CRA Review Can Change What You Owe the IRS

Greenback helps Americans and dual citizens in Canada file accurate U.S. returns every year.

Frequently Asked Questions

Do these CRA changes affect my U.S. tax filing requirements?

No. CRA rules govern your Canadian return. Your U.S. filing obligations, including Form 1040, FBAR, and Form 8938 thresholds, are set by U.S. law and are unchanged. The two systems run in parallel, but a change to your Canadian tax owing can affect the Foreign Tax Credit you claim on Form 1116.

What happens if I miss the May 29, 2026, drop box deadline?

After May 29, drop boxes are no longer an option at any of the 45 closed locations. Your remaining channels are NETFILE-certified software, your CRA My Account, or regular mail through any Canada Post location. Postage applies to mailed submissions.

Can the CRA review my return after I have already received my refund?

Yes. Post-assessment reviews happen after your Notice of Assessment is issued and can be initiated any time during the year, now that the CRA has moved to a year-round model. The CRA can also reassess most individual returns within three years of the original assessment date.

How long do I have to respond to a CRA review letter?

The CRA’s own guidance states that you have 30 days from the date of the review letter to submit the requested documents. If you need more time, you can call the agent listed on the letter to request an extension. Refunds may be paused while the review is in progress.

If the CRA changes my Canadian tax owing on review, do I need to amend my U.S. return?

Often, yes. If the change affects the Canadian tax you actually paid for a given year, your Foreign Tax Credit calculation on Form 1116 changes, and you will typically need to file Form 1040-X for the affected year to keep both filings aligned.

Does a CRA post-assessment review mean I am being audited?

No. A post-assessment review is a routine verification, usually focused on one credit or deduction, not a full audit of your return. The CRA reviews approximately three million tax returns each year through these programs. Responding on time with the requested documents is normally the end of it.

The information in this article is for general informational purposes only and does not constitute tax, legal, or financial advice. CRA and IRS rules are complex and change frequently. Consult a qualified cross-border tax professional regarding your specific situation before taking any action.