When you owe Canada Revenue Agency or the CRA large sum of taxes that is beyond your financial means to pay off, it may be time to consider CRA taxpayer relief.  In the application of such relief, experienced Toronto tax consultants can play important roles concerning CRA taxpayer relief. There are many small business enterprise owners who have gone bankrupt because of the seriousness of their tax owing. It is not easy to manage the interest and prohibitive penalty costs.

CRA will try their absolute best to recover all the taxes that they can from the taxpayers. You will have to work closely with a Toronto tax consultant to know what kind of CRA tax relief you are eligible for and what steps you will have to take in reduction of the tax damages. A Toronto tax consultant is going to advise his or her clients to prospect all they can towards tax savings and try to reduce their tax liability for every dollar. The interest and the penalties are sometimes as large as the original tax principal amount.

When you contact a Toronto tax consultant, you will have to give all details concerning your tax issues and find out the possible outcome of the steps that you are going to take in applying for CRA taxpayer relief program. There is no room for procrastination when it comes to dealing with CRA. The more you delay, the worse the things are going to become. It is wiser to take action well in time rather than pushing it for a later time.

A Toronto tax consultant would be able to advise you that the Canada Revenue Agency would offer CRA taxpayer relief if you are not in a position to fulfill your tax obligations as a direct result of uncontrollable force majeure events such as in the case of flooding or fire. Businesses who have not been able to file their income tax returns before the due dates, as a result of flooding, can apply through CRA taxpayer relief to have their penalties and interest waived.

The Canada Revenue Agency may waive the penalties and interest if any natural disasters have caused difficulties for taxpayers who may have been affected by them. CRA is aware that the main concern of the affected people during such catastrophic natural events would be their home and families. This is allowed on the basis of circumstances that go beyond the control of taxpayers. All those individuals and owners of businesses will find themselves eligible for CRA taxpayer relief if they are not able to meet their payment or filing obligations by the due date passed.

The CRA taxpayer relief is a well defined process to help the taxpayers in resolving their tax problems that are a direct result of happenings which are beyond their control. The CRA considers the relief requests on a case by case basis.

Contact Tax SOS tax consultant, we are well equipped with knowledge and experiences of helping taxpayers with CRA taxpayer relief program and achieved great success.  Call us for a free consultation at 1-877-982-9767 and take the step to reduce your tax liability today.

If you have not paid your taxes and not negotiated a delayed payment plan with CRA, it can take steps of enforcement against you such as CRA income garnishment. The CRA does not even need to go to court for that. This is a big power that has been vested in the CRA. Any other creditor has to arrange a court order before he or she is able to take any enforcement action against you.
The CRA does not require giving you any warning or procuring a court order to go after you. The first step in the enforcement plan is to impose CRA income garnishments. Once the income garnishments are enforced, there is not much you can do to lift that enforcement by yourself. You could be in severe financial hardship or your business may struggle. It will not matter at all as CRA will go through with the enforcement.
It is always wiser to allow a professional tax consultant to handle your tax filing and related cases. The professional tax consultant will be able to negotiate, as a routine, any removal or reduction of the enforcement measures. The CRA is entitled to impose income garnishments up to fifty per cent of your earnings and up to the entire amount of a sub-contractor income. This can result in a major financial disruption and can cause plenty of damage to a business organization.
Your bank account also could be frozen in addition to CRA income garnishment. When the Canada Revenue Agency freezes your bank account, they will send you a letter which is known as ‘Requirement to Pay’. This letter indicates the amount of tax owed and the terms of payment. The letter will also direct your bank, through a copy, to freeze your account. Your funds will be then held as frozen for a selected time period and then forwarded to the CRA. This will leave you totally stranded as you will not be able to pay your bills nor will be able to conduct your business.
The professional tax consultant will be able to help you lift this CRA income garnishment. If you have assets in the form of property, the CRA can also register a lien against your property at any time they so desire if the taxes are not paid. You will not be able to sell your property or get your home refinanced until you have taken care of the lien and resolved your tax issues as all current mortgage holders will also be informed of the lien.
The CRA can use more than one enforcement action against a taxpayer. If a taxpayer owes larger taxes, in addition to CRA income garnishment, the CRA could also freeze the bank accounts and also place a lien on the taxpayer’s property. Therefore, it is better to organize your paperwork and take the help of tax consultants in planning out your tax payments. The tax consultant will help you take advantage of various rules that are updated on a regular basis to enable you to stay feasible under your tax payments or those payments into the next assessment period.

If you are living in Toronto and face some tax problems with the CRA (Canada Revenue Agency), such as unfiled tax returns or tax owing,  a Toronto tax accountant can guide you in resolving your tax problem effectively.

The Income Tax Act is complete with income exclusion rules, important tax credits and rules on investment that could be missed out if you are trying to file your taxes by yourself. If there is no sufficient knowledge and experience, it may end up with miscalculations and backfire a few years down the road when CRA catches the mistakes. The CRA’s penalties and interests can amount to the thousands. Tax service with a Toronto tax accountant can become a powerful resource in saving that money.

If you have filed tax returns and are owing taxes to the CRA, you may want to negotiate with the CRA for a tax payment plan before any legal actions taken by CRA collection agents, there are a couple of things that you have to keep in your mind. First, you are dealing with a bureaucratic set up when it comes to CRA collection that means time consuming dealing with CRA.  The second thing that you have to keep in mind is that you cannot rub the Toronto CRA the wrong way. Getting help from specialized Toronto Tax Accountants can help you deal with CRA with much greater chance of success.

You have to be armed with a reasonable plan of defense when it comes to negotiating with a CRA collection agent. The Toronto CRA may accept a payment plan if you are not in a position to pay your taxes in full. The most important step you can take in this direction is to get help from specialized Toronto tax accountants who will help you get all relevant documents ready to prove that you cannot pay the tax in full.

A Toronto tax accountant can help you to prepare proof to show that you do not have any assets or sufficient savings to pay your taxes. The agent will also take into account that you do not have any collateral which you could pledge against while taking a loan to pay your taxes.  Specialized Toronto tax accountant will help you to compile a list of all assets that you possess which could be deemed as possible collateral by the financial institutions against a loan made out to you. If you have enough savings or assets, then you have to prove to CRA, that it is not going to be convenient to liquidate your assets to pay off the taxes, with a plausible explanation. Tax accountants can help with a successful tax payment plan to avoid further legal actions from CRA collection agents.

Before you prepare your CRA tax payment plan, you need to work out the time you will require to pay off your full tax. You can break down your total tax owing and arrive at a figure that you can pay every month. After that, your tax consultant will start the negotiation with CRA to convince them why the monthly payment proposed is a reasonable one. It will be a back and forth negotiation process. The bottom line is CRA wants to collect the tax as soon as possible; you, on the other hand, need to pay an affordable amount without adding financial stress. You can begin your calculations of the tax portion by normally going over your assessment notice. 

As aforementioned, CRA tax payment plan is not usually granted at the first attempt. You have to spend considerable time working with your tax consultant in the preparation of a viable application so that you can justify to the CRA on why they should allow you to pay your taxes in installments.

The CRA has Income /Expense or a Net worth Statement that they like people to use when they are working out their  CRA tax payment plan. It will be better on your tax consultant’s part to submit to the CRA the current statement for mortgages, credit card bills, loans or any other kinds of liabilities that you may have. Bank statement, credit card statement and stubs will be required as proof to show that you have submitted accurate figures in your Toronto tax payment plan negotiation proposal. Your Credit Report will also help in your Toronto CRA tax payment plan negotiation. It will go on to show that you are not concealing anything and that your payment plan proposal is genuine and that you cannot pay more than that on a monthly basis.

Payment arrangements for your tax payment plan negotiation with CRA could be quite complicated. When you submit your proposal, there may be one CRA agent who is handling your case but there is a likelihood that after a few weeks, you may find some other agents attending to your case with a totally different outlook and you may have to ask your tax consultant to start the convincing game once again with this other agent. Once your payment negotiation arrangement has been accepted by the CRA for the whole period you have proposed, your tax consultant can also consider putting in an application for Taxpayer Relief. It is a process that prompts CRA to use their discretion and consider canceling or waiving your tax account’s interest charges.

Once the CRA tax payment is approved, it is important to obtain a written agreement with CRA. Typically a confirmation letter from the CRA agent is sufficient. This is to make sure CRA has that tax payment plan recorded in their system to avoid newly assigned collection agents knocking on your door asking for the whole payment again.