There are different concepts and ideas of people regarding tax relief or taxpayer relief. A number of people assume that it means they don?t have to pay taxes and are relieved from them. However, taxpayer relief is defined as a process where individuals have to pay taxes, but are looking to negotiate a lower settlement with the taxation authority. On the other hand, this particular term is used by the taxation authority for referring to specialized tax deductions for people who suffer from losses and expenses because of some natural disaster or other. Basically, this term is used to refer to any legal method that may be adopted by individuals for reducing the amount owed in taxes.

Different types of tax relief or taxpayer reliefs can be sought by people if they owe taxes for the previous or current year and are unable to settle their due in full all at once. An installment agreement can be made with the taxation authority or a waiver of penalties or interests can also be negotiated where people have to pay a lower amount of tax overall.

Depending on the circumstances of the individual, various deductions are offered by the CRA that can reduce the tax burden faced by people. However, during this period of taxpayer relief application and approval, the interests and penalties will continue to grow. The CRA will carefully examine the merits of the individual and determine if they will be unable to clear their outstanding tax liability.

The typical grounds that can be used for taxpayer relief

Extraordinary circumstances, such as flood, fire or other natural or man-made disasters; disruptions in services, such as a postal strike;  serious illness or accident; or distress caused by a family death.

Mistakes of the Canada Revenue Agency (CRA) such as errors in processing tax submission or prolonged delay in assessing returns.

Financial hardship is another ground in the taxpayer relief application.  The CRA may, upon the confirmation of inability to pay, consider waiving or canceling interest so taxpayers can afford to pay their taxes. Common example will be the loss of employment and the taxpayer is experiencing financial hardship;

CRA can also consider under financial hardship if a taxpayer is unable to set up a payment plan because the interests are the big portion of the tax owing.

Get help with the complicated tax relief (taxpayer relief)

The taxpayer relief process is a lengthy and difficult one. Without the guidance of experienced tax professionals, it could end up wasting taxpayers’ time without any relief being granted due to the insufficient support or weak argument. Call Tax SOS for help to make the process easier for you at 877-982-9767.