Every individual or business organization earning income and profits respectively is required by the law to file their taxes on a yearly basis. Taxes are basically the primary source of income for governments and it is used for the development and improvement of the country. Filing a tax return Canada is essential and obligatory for individuals and businesses that are earning money. Fines and penalties are levied on those who do not pay their taxes and they will increase over time. Therefore, everyone is advised to file their returns as soon as they become due and avoid any problems in the future.
Problems with unfiled taxes
However, approximately over six percent people forget or neglect to file their tax returns on a regular basis. They end up encountering the problems of unfiled taxes that can prove to be immensely complicated for them. The implications of not filing should be understood by people for ensuring that they do so on time. If a tax return is left unfiled, the CRA may do arbitrary assessment that may increase the amount due. They may also have to deal with penalties of late-filing, which can further boost the costs. Also, the company or individual may also be subject to legal action by the tax authority, which can create even further problems.
Apart from that, there are often time limitations for collecting a tax refunds and not filing on time would mean that people will lose their refunds and thus have to pay a high amount of tax. If tax is owed with the return, late tax filing means that severe penalties are applied. Interest charges may also have to be borne on the tax along with the penalty. Also, regardless of the number of years that pass without filing a tax, it doesn?t mean that the obligation goes away with time.
Solutions for unfiled taxes in Canada
If people are having tax troubles and need to get out of it, they should file their returns. Late tax preparation involved filing all your pending and unfiled ?taxes returns. The first step to undertake is to determine the years that require filing. ?People can contact CRA if they lack any records of when they last made their filing. The next step requires people to gather all the necessary documents that are needed for the filing process. This includes income documents such as T5008, T4 or T5 slips or other income slips/forms and other tax-related documents as they are all crucial for filing returns.
Obtaining the tax forms is the third step that should be taken in the case of late tax filing. The correct form should be used for every year. This means that the current year form cannot be used when filing for taxes of the previous year. People who are aware of the tax codes and laws can file their returns on their own. They can also hire professional for filing their back returns and figuring out whether individuals are going to get a tax refund or owe to the CRA.
If you need help with unfiled taxes and are given urgent deadlines to file, call Tax SOS right away to ensure a timely and professional completion of your tax filings at 1-877-982-9767