Paying tax is obligatory for every individual and business, as long as they are earning an income. However, in today?s society, it is difficult for people to fulfill all their needs within the income they are earning. Therefore, it is common for them to fall behind on their tax payments. The problem is that the tax will continue to climb up every month and will be very difficult to pay off. Without a negotiated tax payment plan with CRA or Canada Revenue Agency, the Canadian taxation authority, can decide to subject you to refund garnishments where the tax refund of individuals is deducted for satisfying a tax liability.
Option for tax payment plan
In the case where people are unable to satisfy their taxation liabilities, they have the option of contacting the taxation authority and asking them about the tax payment plans. The CRA sometime will agree with payment plans in regard to taxes, which can make it easier for people to pay their tax dues. There are a number of options at the disposal CRA to collect from those people who have a delinquent tax balance.
Monthly installment agreement can be affordable option when individuals wish to make payments once every month until they have cleared their due tax balance. Considering the amount of tax owed and the current financial situation of the individuals, the CRA will set as high amount as possible. This can add unbearable financial stress to individuals.
Why choose CRA tax payment plan
Once collection agents believe it is difficult to collection taxes, they may start legal collection actions. Wage garnishments as one form of legal action may be initiated. In this scenario, the taxation authority will partner up with the individual?s employer and deduct the due tax directly from their salary. Another legal action could be bank levy, which is very similar to wage deduction. Only this time, the taxation authority will demand the banks to deduct the due amount from the bank account of the individuals. For business tax owing, CRA may garnish business income direct from clients or payers, which can chock the financial throat of small businesses. These are the reason why negotiating an affordable tax payment plan is crucial for survival of many business or individuals.
Call Tax SOS today at 1-877-982-9767 to have a free consultation about how you can get an tax payment plan without the surprise legal collection actions initiated by CRA.