Irrespective of however precise and accurate your tax returns may be filed, there is always a chance that CRA may decide to recheck your returns. Hiring tax audit help is always a good idea as it ensures more accurate filing of your returns and hiring experienced and professional people to do the job for you also guarantees hassle free relations with the CRA in case they do decide to audit your returns.

In many countries of the world usually the government files the taxes on the citizens, however in Canada the government allows individuals to file their own taxes based on self assessment of individual expenses and income. This system although allows individual to stay more in control of their tax filings however also indicates that CRA is required to review these filings from time to time.

To make this process transparent and honest they from time to time self audit returns submitted by individuals. The method through which individuals are chosen for CRA audit is based on fairness; that is people who are more likely to stretch the real facts when it comes to filing of taxes, however at times they even do pick random people to audit.

The main focus of CRA audit is to target self employed individuals and businesses, as salaried individuals have a rather clear cut tax return and mostly file their returns accurately. Also CRA may target specific industries and audit firms relating to it.

Choosing a well reputed and experienced tax expert company such as Tax SOS will ensure not only accurate filing of taxes but will also shield you from facing CRA in case of an audit an expert dealer of the firm gets on the job if the need arises and is present with you at all times during the audit phase.

The benefits that you can achieve through hiring tax audit help include

1. Relieving you of your stress while a professional expert takes matters into hand and takes care offering the best possible solutions

2. Review all related documents and tax returns to check on any problem area

3. Using the highest appeal levels, defend your CRA filed returns on your behalf

4. Correspond on your behalf with the CRA

5. Attending and scheduling of all audit appointments with you and CRA.

Tax audit help also helps in avoiding any problem or stress in case of random CRA audit as honest and error free tax filing will automatically work in your favor even if you are chosen for tax audit.

The best thing about tax audit help is that you can file accurate returns, never get caught up in CRA audit and get all of this done at really affordable rates. Not only are tax professionals proficient in dealing with the CRA as this is what they do all day, rather they also work up for you in all other kind of tax related problems thus resulting in saving you money in the long run. So whether you require tax audit help or some other tax related consultation, hire the best tax experts and get rid of your tax problem permanently.

Summary

Hiring tax audit help is the best way to avoid CRA audit as not only does it ensure honest and fair filing of returns but also makes defending your case in front of CRA easier in case they do decide to audit your returns. Tax audit help can easily take care of all matters leaving you stress free.

Unfiled taxes are a common problem faced by many individuals. The better you know about them, the more you are prepared to handle the situation arising from it. So before we go into what can be done to tackle the unfiled taxes or late tax filing situation, let us first consider the most common reason behind them.

Main Reason

One very common belief associated with unfiled taxes is the thought that the amount to be paid will be more than one can afford. This is the prime reason for which individuals do not file tax returns or even if they do they do it late.  The problem exceptionally gets out of control when these unfiled taxes are not filed for years and are unnoticed by tax payers until they snowball large enough to crush you under.

What To Do

The best way to counteract the burden that will arise after ignoring years of unfiled taxes is to act as soon as possible and even before that gain as much knowledge regarding the matter as possible. Acting without exploring all consequences will also cost you more. Many times people panic and file their taxes without understanding the personal consequences and pay for it in the form of hefty interest and penalties charged by CRA (Canada Revenue Agency) because of late tax filing.

CRA Penalties

It should be known that any penalty charged by CRA in lieu of unfiled taxes will be on top of owed taxes. Penalties resulting due to late filing can be quite high at times especially if it is on a repeat offender. In case a person owes taxes and has not filed them on the set time, first time default penalty can be as high as 17% of the total owed tax amount. In case the offence is a repeated one and a repeat occurrence of not filing taxes arises, the penalty amount can go as high up as 50% of the total tax amount.

CRA Charged Interest

Also added with the above mentioned penalties, CRA also charges interests on balance tax and penalties that are compounded on a daily basis and are quite high compared to the interests charged by banks or other financial institutions. For any individual who has years of tax owing on him, it should not be surprising to see that more than half of all the payable amount consists of interest and penalties.

In Case of Not Filing Taxes

For those who have not paid their taxes for years and do not plan to file taxes as well bear the risk of being convicted and charged with criminal offenses including tax evasion. CRA also practices the notifying of such guilty pleaded individual in public all over Canada.

What to do

The best way to handle your tax filing situation is to hire the expert services of a tax provider who has experience and expertise to deal with tax agencies and can resolve your problem reaching a satisfactory resolution and helping you in every way for late tax preparation.

What to Consider When Choosing a Tax Service Provider

Your chosen tax service provider should hold the necessary expertise such as CRA former auditors, accountants and individual with thorough knowledge of Canadian tax system, along with the experience to deal with similar cases as your own. Tax SOS is one company that has a record and experience of providing numerous individuals with the best possible outcomes to their problems. Tax SOS has been the best choice for many when it comes to filing tax return Canada.

Summary

The increasing number of late tax filings indicates that the majority of individuals are unaware of the consequences of unfiled taxes. In order to properly understand the consequences and be better prepared to face the penalties and interests imposed by CRA, it is always best to have as much unfiled tax related information as possible; to save as much of your hard earned money as possible from being spent under the penalty head.

Whoever said that the only certainties in life were death and taxes was right – there is no way to avoid either of them. It is easy to worry about both and while it is hard to avoid dealing with death it is possible to get help when it comes to dealing with CRA tax collection. When the bill comes in, it is important that it is dealt with right away, even if there are concerns that it is going to be difficult to pay. Avoidance is futile, as the taxes will not disappear, but will become more of a problem if ignored.

CRA tax collection officials can become involved if there is not an arrangement to pay put in place, and enforcement action can be started to ensure that the tax problem is dealt with. With some types of tax owing there are minor actions taken, but with CRA tax collection, the main aim is to get the money regardless of the position this leaves you in. Officials can carry out a number of actions, including taking your salary, emptying your bank account and on occasions they will put a lien on your house. Items can be taken and sold in order to satisfy your tax owing.

There are a number of ways to deal with CRA tax collection and while it is possible to deal with the officers alone it is not the best way to go. They will know the law inside and out, and while many will only be totally honest with you, there are others who will only want payment and may tell you things that are misleading to say the least. There are some who will come to your house as part of the CRA tax collection process, and they will be determined to make you give them as much money as possible. They are covered by the law, but will often imply or even state that they have far greater powers than they actually do have.

Once you are aware that you have a large tax bill, you need to contact a professional and find out what rights you have and also how they can help you deal with CRA tax collection. In some cases it will be possible to put in a challenge to the bill that has been presented and this will be done by putting in a Notice of Objection. While this will not always be possible, and this will be when the bill presented is accurate, then there will be advice given regarding a payment plan.

This will be something that you can afford as well as something that the court is happy with. It is reassuring to know that tax collection by CRA can take place without your belongings being confiscated or wages taken. It will be worrying to see a high bill but most of the time it will be dealt with over time.

It is possible that you will receive notice that you are to undergo a tax audit and this can be for a variety of reasons. In some cases it will be because something was picked up in the tax return you entered, but it is just as likely to be because you were selected at random and there was nothing suspicious found in your file. You will want tax audit help whatever the reason for your selection. There is always the chance that they have indications that you have earned more than you have let the authorities know about.

It could be that interest from savings has not been declared and this is something you need to do as the bank is going to pass on this information and you do not want to undergo a CRA audit for such a simple mistake. Often there will not be an audit set in place right away, but rather you will be given the chance to agree to the new figures that will include the missing information. This is an easy way to deal with the issue, but there is the chance that you are right and they are wrong, so you will want to argue your case and it is at this stage that you should seek tax audit help.

You could find that there are disagreements when it comes to other areas of your business and the authorities are actually questioning the validity of some of your expenses. It is here that you will not want to go through the process of audit alone and will want tax audit help as the people providing it will have much greater knowledge than you have. Planning to put up your own defence will not be the best course of action, as there could be a lot of money involved and a specialist will have more chance of winning the case and protecting you from additional payments being made.

When you have tax audit help, there will be someone else who is looking at your return and picking up sections where you may have gone wrong. Not only will they be looking at the areas that are being questioned, but they may see things that you have forgotten to include, and the addition of this could mitigate any further payments you would have been expected to make. A CRA audit may actually become fairly easy and straightforward when you go into it with tax audit help.

While it would be preferable if you were not subjected to an audit, there are good reasons why they happen. Most people do work within the law when it comes to paying their taxes, but sadly there are some who do not and Tax Audit is the only vehicle available to the CRA in order to make sure that people pay the right amount of taxes.

If you are ever feeling uneasy thinking about tax audit, do not consider yourself alone. You may need tax audit help, you may subsist on fear about tax auditor behind you, it is necessary that you should be aware of all the hard facts of life. This can be of individuals or of businesses. CRA audit costs you more money and time.

It is an undeniable fact that tax audit might hit you anytime. Before a CRA auditor knocks your door, you should come up with a better understanding of some important things. For example, understand the audit triggering factors, what the audit process involves and how an audit firm can help you etc.

Tax audit help comforts you if a tax auditor comes to your door. It makes you ready for the situation.

What can CRA audit do?

In an effort to defend the justice of tax payment, Canada Revenue Agency audits HST/GST selectively. They ensure system integrity in Payroll returns, income tax returns, excise duties and excise taxes. The CRA audit conducts the audit in relation to the regulation or statutes that it direct.

How is a file selected for a CRA audit?

The CRA has recognized four general selection methods of files. These are:

1. Computer-generated lists
2. Audit projects
3. Leads
4. Secondary files

The choice of HST/GST returns for audit or examination depends on both the assessment of risk and hit and misses file selection.

How to avoid a CRA audit

Tax audit help offers a great support to your small business by saving your money and time in addition to relieving the stress that you will suffer in the case of CRA tax audit. There are some tips that might help you to stay off the CRA’s audit radar screen.

An audit is a review of your tax return records done by CRA to ensure the accuracy of your individual and business taxes. The CRA tax audit performs office audits or performs a field audit. It reviews records of your business.

You should always avoid audit triggers that include reports of losses in consecutive years, particularly in case of personal enjoyment benefit in it. Tax audit help is important if your lifestyle does not match your reported income. Remember, underreported and unreported are the most important audit trigger.

Maintaining separate account for personal and business expenses leads to tax audit help. Keep all documentations and receipts of expenses that you need to claim.

Filing and paying taxes at an expected time is a great tax audit help. The late payment might lead to phone calls or meetings with the CRA audit. Always make sure your returns are perfect and comprehensive.

Consult an experienced Tax Accountant who will help you to be sure about the correct preparation of your financial account for CRA tax Audit. An experienced Tax Accountant is well aware of the tax law and can suggest tax planning strategies. An experienced Tax Accountant can help to calculate and suggest the lowest amount of tax you are obligated to pay with controlled risks of CRA tax audit.

A CRA tax audit could become a daunting task that is not so easy to manage. When you receive a Notice of Assessment from the CRA, you can seek help from experienced tax professionals so that they can guide you in the resolution of all tax audits with CRA auditors.

The auditors who conduct the CRA tax audit may make the taxpayers feel defensive. It will empower you when you gain some knowledge about the process of the CRA tax audit and about your legal rights as per the Income Tax Act. You need the help of tax professionals who focus specifically on the resolution of tax audit problems with CRA when they represent you in your CRA tax audit process.

The task of the auditor is to assess the tax dues and not to think in terms of the best interest of the taxpayers. There may be some clashes during the process of the CRA tax audit. Taking the help of tax professionals can minimize your interactions with the auditors and it will help bring your stress levels down so that you can focus on the business at hand during your times of financial hardship. Not being able to negotiate with the auditors during a CRA tax audit can become unproductive and it may also lengthen the duration of the audit, bringing in unnecessary tax assessments and penalties.

During the CRA tax audit, the auditors may require additional information concerning your records of income and expenditure and documentation. They may also seek some answers to questions in writing. Information becomes the basis of all tax assessments. It will help you tremendously if you understand what documentation and information you have to provide to the CRA and you may have to consider your answers very carefully to the questions so that you have a strong footing during the CRA tax audit. Tax professionals will be able to help you in understanding why the CRA auditor is asking certain questions or seeking specific information.

Spending some time with the tax professionals will help you in the preparation for the CRA tax audit and will improve your chances of an efficient resolution of the assessment. You have to remember that the CRA has broader powers so that they can request you to provide all the supporting evidence or document to sustain your tax claim. The CRA can use documents, notes and all kinds of discussions against you if they feel that they have a strong case.

The tax professionals will help you in the review of all relevant documentation and will prepare answers to certain expected questions from the CRA auditors. They will also help in the preparation of written submissions to a CRA auditor to support your filing position and explain your stand on the tax issues of dispute during the CRA tax audit.

A tax amnesty or a Tax pardon is also referred to as a voluntary disclosure in Canada. This is a procedure which enables you to deal with income tax or Goods and Services Tax returns which have not been filed. It involves income which has not been reported. When you appeal for a tax amnesty, you may be able to avoid penalties, charges for income tax evasion and prosecution too.

It is always advisable to seek a professional tax representative to help you. A tax firm has experience with tackling voluntary disclosures and representatives can guide you through your personal or corporate tax situation.

The Canada Revenue Agency (CRA) has a voluntary disclosure program which is generally known as tax amnesty or a VDP, which enables taxpayers to declare their income voluntarily and file their tax returns, which have not been filed earlier or have been filed inaccurately.

The tax amnesty program helps in the waiver of civil penalties and it may save you from criminal prosecution. The crucial thing to remember is taxpayers have to act on a voluntary basis, being fully cognizant of their legal responsibilities as per the Income Tax Act and the Excise Tax Act by reporting their tax affairs before the CRA begins to take any action or investigates against them.

All taxpayers who take the shield of the tax amnesty program will have to pay their outstanding tax amounts as assessed by the CRA along with the interest charges on the unpaid amount with the penalties waived.

Canadian non-residents can also be accommodated for the tax amnesty program and if they are able to meet certain requirements, they can extend their date of submission under Section 216 returns. The program also enables anonymous disclosure under the provision of a No-Name Policy which has been created to protect the identity of the compliant taxpayers.

If the taxpayer decides to remain incognito and confidential, he or she will be allowed to proceed with the voluntary disclosure and cannot be prosecuted up to a period of ninety days. This period of ninety days starts from the effective date of disclosure. The effective date of disclosure is established by the date the written voluntary disclosure is submitted to the CRA, whereby a receipt is given on the VDP Taxpayer Agreement Form from the tax services office.

During this period, the taxpayer will be safe from any CRA interference or charges of prosecution. This anonymity is also applicable if the income which has not been reported has been earned from offshore sources or through ambiguous or criminal activity.

To summarize, tax amnesty is applicable when there has been a failure on a taxpayer’s part to report his or her income; or if the income has been reported inaccurately with some missing information. If applied successfully, the taxpayers can enjoy the benefits of penalties free or even reduced interests treatment on their taxes.

Filing income taxes past years could be a complicated affair. It is important on your part to get the pending things done right by seeking expert help from tax accountants in Canada. It is always safer to get professional guidance if you have a tax situation which is complicated, when you own property, you earn income from several sources or when you have considerable medical expense. This becomes more complicated when you have missed out on filing your tax returns for the past few years.

You can file income taxes for past years at any time within a ten-year period. You can file these taxes at any time and also receive refunds up to ten years back if you are in Canada.

April 30 is the deadline every year for Canadians to file their personal income tax returns for the previous year. If you happen to miss out on your previous filing dates, you cannot take a decision to skip the payment altogether. This would also depend largely on whether you actually owe the tax to CRA or not.

The adage of “death and taxes being certain” comes out true as the Canadian government wants a tax return filed even if a person ceases to exist during a tax year. In such a case, the person responsible for acting on the dead person’s behalf for his estate has to file the concerned person’s income taxes for past years by April 30^th of the following year. This is applicable unless the concerned person dies in November or December; in such a case, the tax returns are due within a period of six months from the date of death.

You have to note that if you are late in filing your income taxes past years but if you do not owe any taxes, then there will be no question of any penalties to be paid to the CRA. There will, however, be a financial hit that you will have to take. The Canadian government will hold on to any refunds that are due to you until you file your income taxes past years and there will also be a delay in getting your benefit pay-outs that you may be eligible for like the GST or Child Tax Benefits.

It is wiser to file your income taxes past years as there may be accumulated credits due to you based on your tax returns. If the government does not become aware of your income source, the credits due to you will never be sent to you. If it is determined that you owe taxes to the CRA and you decide not to pay your taxes by not filing your returns, then penalty charges will pile up against you beginning from 1^st May of every year. The interest will be charged on a compounded rate on a daily basis on the amount which is unpaid.

What are you going to do when the CRA issues an income tax or Goods and Services Tax Notice of Assessment or Reassessment and you feel that the Agency is in error concerning the amount of taxes you have to pay? You will have to respond by filing the CRA Notice of Objection.

Your initial step will be to ensure that you comprehend the rules about the Income Tax Act and how they apply specifically to your tax issues. Even though the rules may seem tough, they have to be applied in the correct perspective. If the rules are clear and they have been established, you may have no other option but to adhere to the amount you have to pay despite your dislike of paying those extra taxes.

On no account should you hesitate to get professional guidance in a situation like this. The time spent with a specialized tax expert will be worth your while in preparing yourself for the CRA Notice of Objection. You will also be in a better position to understand whether the Notice of Assessment is clear under application of the rules or if you stand a realistic chance when you object or appeal against that notice from the CRA.

The next step that you can take in collaboration with your tax counselor is to contact the CRA and request an adjustment. This could be done by filing a CRA Notice of Objection through CRA Form T400A. This form is for income tax objections. The form has to be filed before the deadline expires. The deadline provided is ninety days from the time you receive the Notice of Assessment from the CRA.

The Income Tax Act has made a provision for a formal process of objection for people who are not in agreement with the Notice of Assessment sent by the CRA. The process of formal CRA Notice of Objection starts with the filing of that objection. There is an impartial review by the Appeals Office of the CRA. Matters can sometimes lead to the Federal Court or the Supreme Court of Canada.

The CRA Notice of Objection has to contain a set of reasons for the objection and must provide all relevant facts in detail to the CRA to back up the disagreement with the Notice of Assessment. All documents like invoices or stubs or letters have to support the objection and should be submitted to the CRA. A copy of the disputed Notice of Assessment has to accompany the CRA Notice of Objection.

If you want to object to more than a single assessment or determination, a separate CRA Notice of Objection has to be filed for each of the disputed assessments. If the facts or supportive documents are similar for more than one assessment, it could be indicated on each CRA Notice of Objection and one common statement of supporting facts has to be submitted.