Canadian Man Returns Mistaken $24,000 Tax Refund, Then Waits 18 Months for His Actual CRA Payments

A Canadian taxpayer who immediately returned a mistaken tax refund of more than $24,000 says he has since spent approximately a year and a half waiting for the Canada Revenue Agency to release more than $3,300 in legitimate refunds and tax credits owed to him.

Alex Pilon, a 35-year-old resident of Thunder Bay, Ontario, said the situation began when an unexpected payment of $24,274.26 appeared in his bank account. The deposit was identified as a Canadian tax refund, even though Pilon had not yet submitted his tax return for that year.

Recognising that the large payment did not belong to him, Pilon contacted the Canada Revenue Agency, commonly known as the CRA, and returned the entire amount within a few days. However, shortly after the payment was returned, Pilon reportedly lost access to his online CRA account.

Since then, he says he has faced repeated delays, lengthy telephone calls and uncertainty over when his genuine refunds will be processed.

Unexpected $24,274 Deposit Raised Immediate Concerns

Pilon said he was shocked when he first noticed the $24,274.26 payment in his bank account. Because he had not filed his tax return at the time, he knew the money was unlikely to be a legitimate refund connected to his own tax record.

Rather than keeping or spending the amount, he informed the CRA and arranged to repay it.

Pilon believes the payment may have resulted from an administrative error, such as an incorrect Social Insurance Number being entered into the tax system. However, he also acknowledged that the transaction could potentially have been connected to fraudulent activity.

The precise reason for the mistaken payment has not been publicly confirmed.

The CRA has not discussed the specific details of Pilon’s case, explaining that federal privacy laws prevent the agency from commenting on an individual taxpayer’s account.

CRA Account Access Lost After Money Was Returned

After Pilon returned the incorrect refund, he discovered that he could no longer log in to his CRA account.

The timing led him to suspect that the account restriction may have been connected to the investigation into the incorrect payment. However, it has not been officially established whether the repayment directly caused the account to be locked.

When Pilon attempts to access his account, he reportedly receives an error message instead of being able to review his tax information, payment status or refund updates online.

Losing account access has made it more difficult for him to follow the progress of his tax returns and communicate with the agency. Without online access, he has had to rely largely on telephone conversations with CRA representatives.

More Than $3,300 in Genuine Payments Remain Outstanding

Pilon says the CRA still owes him legitimate refunds connected to two separate tax years.

He was expecting:

$1,530.51 for the 2024 tax year
$1,380.99 for the 2025 tax year
$412.19 in GST/HST credits

Together, the outstanding amount exceeds $3,300.

Despite filing the relevant returns and repeatedly contacting the CRA, Pilon says none of these payments has reached him.

He described spending many hours calling the agency, waiting on hold and explaining the case to different representatives. Even after multiple discussions, he says he has not received a firm completion date or a clear explanation of what must happen before the money is released.

Taxpayer Says He Feels Frustrated and Powerless

Pilon said the prolonged delay has left him feeling frustrated because he believes he acted responsibly from the beginning.

When he received money that did not belong to him, he promptly reported the error and returned the full amount. However, instead of the issue being quickly resolved, his own account was restricted and his genuine payments were delayed.

He said the experience has made him feel that individual taxpayers have limited power when dealing with a large federal agency.

The situation has also created financial frustration. Pilon recently purchased a home and said the delayed refunds could have been used toward household expenses.

Although the outstanding amount is much smaller than the incorrect refund he returned, he emphasised that it is still money legally owed to him.

Questions Raised About Interest and Compensation

Pilon has also questioned whether taxpayers should receive compensation when the CRA takes an unusually long time to process or release money.

The CRA can charge taxpayers penalties and interest when they fail to pay their tax obligations on time. Pilon argues that similar accountability should apply when the agency delays refunds without providing a clear reason or timeline.

He has questioned whether interest should be paid on the amount owed to him because the government has retained the money for an extended period.

The information provided does not indicate whether Pilon has formally applied for interest, compensation or taxpayer relief related to the delay.

CRA Declines to Discuss Individual Case

The Canada Revenue Agency did not provide details about Pilon’s account, citing taxpayer confidentiality and privacy requirements.

However, CRA spokesperson Sylvie Branch said the agency is committed to addressing reported incidents and resolving problems brought to its attention.

The statement did not provide an expected completion date for Pilon’s case or explain why the refunds and credits had remained unpaid for approximately 18 months.

This lack of a specific timeline remains one of Pilon’s biggest concerns. He says he has repeatedly been told that his account is under review but has not received a clear explanation of what is being reviewed or when the process will end.

Case Reflects Wider Complaints About CRA Delays

Pilon’s experience comes amid broader concerns about the quality and speed of services provided by the CRA.

Many Canadian taxpayers have reported difficulty reaching call-centre employees, obtaining accurate information and getting errors corrected within a reasonable period.

The federal government previously ordered the agency to implement a 100-day service improvement plan. The initiative was intended to improve response times, increase staffing and make it easier for Canadians to contact CRA representatives.

Despite these efforts, taxpayers continue to report long waiting periods and unresolved files.

Pilon’s case demonstrates how administrative problems can affect not only access to government services but also personal finances and confidence in the tax system.

Taxpayer Complaints Increased by 27 Per Cent

A recent report from the Office of the Taxpayers’ Ombudsperson found that complaints involving CRA services increased significantly.

The watchdog recorded a 27 per cent rise in complaints, receiving more than 3,500 complaints during the 2025–26 fiscal year.

The increase suggests that Pilon’s experience is not an isolated incident. Taxpayers have complained about delayed refunds, difficulty contacting the CRA, inaccurate information and unresolved account restrictions.

François Boileau, Canada’s Taxpayers’ Ombudsperson, said cases in which taxpayers wait years for problems to be addressed are unacceptable.

He stressed that behind every complaint is an individual or family waiting for money, documents or decisions that may be important to their financial wellbeing.

Tax Watchdog Launches Investigation

The Office of the Taxpayers’ Ombudsperson has launched an investigation into the options available to Canadians who encounter serious or prolonged problems with the CRA.

The investigation aims to examine why some cases remain unresolved for extended periods and whether existing complaint and escalation mechanisms are effective.

It may also consider whether taxpayers clearly understand where they can seek assistance when standard CRA communication channels fail to solve their problems.

Boileau said he hopes the investigation will identify the reasons behind the delays and help improve the way complicated taxpayer cases are managed.

The investigation is especially relevant to taxpayers like Pilon, who have contacted the CRA repeatedly but remain uncertain about how to obtain a final resolution.

Union Says Processing Centres Remain Understaffed

The Union of Taxation Employees, which represents CRA workers, says staffing shortages continue to contribute to processing delays.

The federal agency reportedly hired approximately 2,500 additional employees for the busy tax season. However, union representatives said many of those employees were assigned to telephone call centres rather than the taxation centres responsible for processing returns and reviewing complex files.

Union national president Marc Brière said employees working in taxation centres are under considerable pressure.

According to the union, some employees are working overtime as they attempt to manage large workloads and backlogs.

The union has called on the CRA and the federal government to hire additional permanent employees instead of relying mainly on temporary staffing measures during peak filing periods.

Refund and Adjustment Processing Times Have Increased

Tax refunds are normally expected to be processed within approximately eight weeks, depending on how the return was submitted and whether additional review is required.

Adjustment requests may normally take up to 20 weeks. However, according to the union, some adjustments are now taking more than 50 weeks to complete.

Complex files involving suspected fraud, account security, identity verification or incorrect payments may take longer because they can require additional reviews.

Nevertheless, the union president described the extended waiting periods being experienced by some taxpayers as unacceptable.

In Pilon’s case, the delay has continued far beyond the normal processing period, with his legitimate refunds remaining outstanding for roughly a year and a half.

Federal Government Says Improvements Are Being Made

The office of Finance Minister François-Philippe Champagne, whose responsibilities include the CRA, said the government has taken concrete measures to improve the agency’s performance.

According to the minister’s office, the 100-day improvement plan helped double the CRA’s responsiveness.

The government described the initial results as encouraging but acknowledged that more work is required to improve service standards, transparency and taxpayer confidence.

The minister’s office also said the CRA would continue working with the Taxpayers’ Ombudsperson to identify service problems and develop sustainable, long-term improvements.

However, taxpayer advocates and employee representatives argue that temporary initiatives may not be enough to solve structural problems such as staffing shortages, growing workloads and complicated review procedures.

Local MP’s Office Contacted for Assistance

After struggling to obtain a resolution directly from the CRA, Pilon contacted the office of his local Member of Parliament, Marcus Powlowski.

Pilon said the MP’s office initially informed him that he could expect a payment on March 20. When that did not happen, he was reportedly given another expected date of May 20.

The second date also passed without the refunds being released.

Pilon said he was later informed that no further timeline could be provided because his case remained under review.

William Fassett, Powlowski’s chief of staff, confirmed that the office was communicating with Pilon and actively following up on the matter. However, he did not publicly explain what specific actions had been taken with the CRA.

Honest Action Followed by a Lengthy Administrative Struggle

Pilon’s case has attracted attention because he voluntarily returned a large payment that he recognised was not his.

His decision prevented him from benefiting from a potentially serious government error. Yet he says the administrative consequences that followed have prevented him from receiving comparatively modest payments that are rightfully owed to him.

The case raises important questions about how the CRA handles incorrect deposits, suspected fraud, account restrictions and communication with affected taxpayers.

It also highlights the need for clear timelines and accessible escalation procedures when a taxpayer’s account becomes locked or placed under review.

Pilon Hopes His Experience Helps Other Canadians

Pilon says he decided to share his experience because he believes other Canadians may be facing similar problems.

By speaking publicly, he hopes to draw attention to the challenges taxpayers encounter when their accounts are restricted or their refunds are delayed without a definite explanation.

His immediate goal remains the restoration of his CRA account and payment of the refunds and credits he is owed.

Until the review is completed, Pilon says he has little choice but to continue following up with the CRA and his MP’s office.

For him, the issue is not only about the money. It is also about receiving fair treatment, timely communication and accountability from the federal agency responsible for administering Canada’s tax system.

Tag: CRA Account Locked After Tax Refund

CRA Account Locked After Man Returned Mistaken $24,000 Tax Refund, Delaying His Genuine Refunds