Can’t Pay The Taxes You Owe?
Posted On: 15/03/22 - 0

While many of us are hoping to have a #payday when our #taxrefund arrives, if you owe taxes, you may find that May 2nd is the wrong kind of “pay day.”

If you’re struggling to pay your taxes this year, here’s what you need to know:

File your return by the due date.

To avoid any #latefiling penalties, the first thing you should do is file your personal return by May 2nd, and talk to your tax service provider about different options to consider

Pay What You Can

Even if you can’t pay the full amount up front, go ahead and pay what you can to reduce your overall balance. A lower balance may mean you owe less in interest and late payment fees later.

Arrange to Pay Your Personal Tax Debt Over Time.

If you cannot pay your debt in full, the CRA can help you set up a payment arrangement. A payment arrangement is an agreement with the CRA to pay your balance in regular payments over a period of time.

Talk To Your Advisor About Taxpayer Relief Provisions.

The CRA has the ability to waive penalties and interest, accept late-filed, amended or revoked income tax elections, and to provide income tax refunds beyond the 3-year period normally allowed. There is a 10-year time limit on these taxpayer relief provisions.

The taxpayer relief provisions can apply when a taxpayer or registrant has not been able to meet tax obligations due to:

  • extraordinary circumstances
  • actions of the CRA
  • inability to pay or financial hardship

We understand that owing the CRA money can be stressful, but don’t panic! A qualified tax professional can assist you in finding the best ways to manage your debt. We here at Padgett Business Services N.W. are ready to help, so you don’t have to worry. Call us today!

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297