Frequently, taxpayers do not file business or individual tax returns for multiple years for a number of reasons. Some of them may be missing some of their documents and records, others may simply forget to file. Many people fail to file one year and then simply stop filing in the future for fear of prosecution. The fact is that the Canada Revenue Agency (CRA) would rather work out a plan with people who owe back taxes than send them to prison. In 99.2% of cases, the CRA chooses not to prosecute, and tries to come to an agreement with the person who owes the money.
If you have tax problems and missed filing for multiple years, you should seek the help of a professional tax firm to file your returns correctly. This requires obtaining your records to find out what the CRA says you owe them. The biggest mistake you could make would be to file the tax returns and not show income slips that you’ve received and failed to file in the past. This is why pulling your records from the CRA is essential because it must be determined exactly what information they have concerning your income. The CRA has a multitude of resources it can rely on to determine who hasn’t been filing their taxes. The digital revolution has allowed the government to maximize use of their computer systems, and they’re now much more efficient at catching up to people with tax problems. The new systems perform regular scans to determine who isn’t in compliance. Sometimes the result will be an audit of a particular individual or business. Enlisting the help of an experienced team like Tax911 Now! will make your process much easier and more organized.
The CRA can only assess taxes against someone if they file tax returns or if the CRA files a substitute return on said person’s behalf. You definitely don’t need the CRA filing a return for you. They likely won’t have your best interests in mind but will be looking out for themselves. The result of this could prove to be financially detrimental to you. The simple solution is to hire a tax firm and, with their guidance, file a new return which may reduce the debt to a lower amount. The sooner those returns are filed, the less large penalties and compounding interest accumulate. To find out tax return qualified company for filing a complete and correct tax return.
Failing to file a tax return is actually worse than filing and not having the resources to pay the amount owed. If you file a tax return and don’t have the resources to pay, the CRA may be willing to put you on a payment plan. Failing to file a tax return is a crime and many people are punished for it every year. Failing to file can result in a financial penalties that accumulate interest until you pay them. The knowledgeable professionals at Tax911 Now! will ease your mind, help you address your tax issues effectively and will help you to move forward without worry. Contact them today for a free consultation.
Writer Doug Mathly is well versed in Canadian income tax regulations but he also has dealt with his share of tax problems over the years. Doug has had great experiences working with the professional team at Tax911 Now! and he enthusiastically recommends that you file your taxes correctly every time. Read up on how they can help you to feel confident with your tax return.