Filing Personal Taxes After The Deadline
Posted On: 24/04/23 - 0

filing personal tax returns after the deadline

It happens every year in our office. Clients that are filing personal taxes after the deadline. If you owe taxes to the CRA and file after the deadline, there are additional costs. Did you know that there is a late filing penalty as well as monthly interest charges?

What If You Don’t Owe Taxes?

If you do not owe the CRA tax money, then there are no associated penalties or interest. Some people think that because they do not owe taxes they don’t have to file a personal tax return. If you do not file a personal tax return, you will be disqualified from receiving benefits such as the Climate Action Incentive Payment or any other government benefits.

What If I Have Several Years Of Tax Returns To File?

As a resident of Canada earning income, it is mandatory to file a personal tax return. If you have several years of unfiled tax returns, the government will send out a notice of assessment. They will request that you pay taxes on what they are guessing was your income. We have found that the CRA usually assesses at a higher rate of income than what you had earned. Honestly, it would be far less stressful to file each year before this becomes a stressful problem that snowballs.

What is a Demand To File Letter?

This is an official notice from the CRA to inform you that you are required to file all past tax returns that were not received by the government. These returns are due 30 days from the date of the letter. If you are not comfortable with dealing with the CRA directly, you can call a tax preparation service and have them represent you. This eliminates a lot of stress and communication with the CRA agent for you.

What Is A Voluntary Disclosure?

The voluntary disclosure program grants penalty and interest relief on a case by case basis to taxpayers. This happens when taxpayers come forward to fix errors or file past returns before the CRA contacts you.

Find A Tax Office For Peace Of Mind

If filing your personal taxes after the deadline is causing you a great deal of stress, call a professional service. Yes, it will cost you money for the service. However, it is worth the peace of mind. The quicker you file after the deadline, the more money you save your self in interest.

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