Even those who have daily dealings with CRA and have an understanding of CRA tax problems find it daunting to understand CRA collection process.
The basic process of collection doesn’t change but the tactics of agents change all the time.
Demand for Payment by CRA
A demand for payment from CRA will come when you have debt according to their books. This may be tax liability or it could be due to a change in their tax return. It also may be an accruing debt with penalties and interests or even due to audit results.
Personal contact made directly with the CRA
Taking action on CRA collection process, CRA could contact you directly. When they ask questions, you are compelled to answer. If you don’t provide proper answers, you could be charged for tax evasion. In case you give the wrong answer it will be used against you. Therefore, it is in your best interest to hire tax professionals as we can deal with them appropriately.
It is important to respond on time
If you get a demand with a timeline don’t wait for the last minute. Respond quickly to avoid trouble.
CRA cannot take action until they send the notice of intent to levy and notice of your right for hearing. This notice may have a 30 day response period for you but possibly they have already started action. Therefore, immediately consult a tax resolution firm in order to avoid trouble.
Provide your Response within 10 days.
In case you receive a letter from CRA demanding your response within 10 days you need to consult a tax advice firm immediately. Though they give 10 days of response time they may take action immediately.
Notice by CRA to levy property
CRA will first keep on reminding you that you owe them some money but at one stage they will threaten to take action but still you have the option to get help from a CRA tax help company.
When CRA informs you that they are going to levy a property of yours, they will inform you what property they are going to levy. This may be your money in the bank account, real property such as your house, your tax refund or something else. This is the time you need to get help.
Final Notice of Intent to Levy
Final notice of intent to levy is always the last notice CRA will serve you. You must seek help of a competent company in order to save your property and your credit rating before they land you in trouble.
Filing Notice of Federal Lien by CRA
If federal tax lien is filed by CRA, you are in serious trouble. The following are the effects it could bring about.
- Your creditors will be noticed of the lien
- Your credit rating will get damaged
- It will be difficult for you to sell your property
- CRA could garnish wages and other finances
- CRA could seize even your car or house
If you or anyone known to you is served with federal lien you could still get help. We are there to help you. Call Tax SOS to get serious help for your serious tax crisis. Call us at (877) 982-9767 or (416)623-9234 or complete the Contact Form to get a free confidential consultation to learn your next step!