CRA or the Canada Revenue Agency is an agency of the Canadian Government. This agency sets and enforces the tax policy on the national level. It also handles the taxes for many Canadian territories and provinces. It not only handles the CRA Tax Collection but also oversees the payroll tax collection of all companies in Canada. It also supervises many tax-related areas, such as CPP and EI administration. It also works like the tax agencies of many other countries. This agency has the power to use lots of ways for collecting taxes and taking actions against the delinquent taxpayers.

Lots of people face tax problems. It is essential to become well-informed about all the perspectives prior to dealing with tax collection issues with the CRA Tax Collection. A large number of people are very much conscious about the consequences of paying tax after due date. They are aware about the heavy punishments and interests as per the rules of CRA Tax Collection. On the other hand, lots of people are not so much responsive to the large interests on the tax charged by the CRA Tax Collection.  The amounts of the penalties and interests are always bigger for the repeat offenders.

Additionally,  the interest charged by the CRA Tax Collection is higher than the bank rate of interest and it is increased daily in compound basis. So, the people who do not pay their taxes for a few years use to see that a large amount of their total tax debit is made up of interests and penalties. As the interest is compounded daily, it rolls non-stop for years.

Now-a-days, the unfiled tax problem of business owners or individuals are increasing day by day. Because, most of them think that they will not be able to pay the tax owing. In fact, it is one of the main causes for not filing taxes in time. As a result, they have to pay a big amount as penalty charged by the CRA Tax Collection.

Though the CRA Tax Collection has alert the people, even the poorer who have missed to file their taxes on time, they can be charged criminally for this occurrence.  They might get guilty in the court of justice for delaying to file taxes.

So, it is better to take the advice of tax consultant for avoiding such a condition. Because, the experienced tax consultant only can help you to take the necessary step for avoiding tax problem or minimizing the tax penalties charged by the CRA Tax Collection.

A consultant only can provide to take proper steps for avoiding tax problems which are related to paying tax effectively. You can take the advice without any hesitation because, they can offer you free consultancy.

Prior to preparing the CRA tax payment plan, the most important thing is to calculate the duration of time that you might need to clear the entire tax bill. In case, your burden of tax is heavy, you can pay it  by installment by splitting the payable amount. This will help you to pay an affordable amount each month regularly.  Next, your appointed tax professional will begin finding the middle way to discuss with CRA about the tax payment plan.   The consultant would try to plead your case reasonably in support of the monthly payment plan.

The primary intention of the CRA agent is to collect all the unpaid taxes as fast as possible. On the other hand, you should make an affordable tax payment plan to pay off the arrear without any economic hassle. You can start on the process  by thorough inspection of the evaluation notice.

You should know it for certain that CRA tax payment plan is not normally granted at the first attempt. You might need several sessions to have fruitful discussion with the tax consultant about the matter. These multiple sessions will allow you to  justify your case to the CRA about the non-payment of tax.

If you delay in making tax payment plan,  prepare for facing CRA garnishments soon.   Many of the Canadians are found to have their earnings garnished every financial year by the CRA. These acts come about because of the tax bills as well as delaying in submission of CRA tax payment plan.

The CRA needs no court directive for executing your wage garnishments.  It is a directive to the creditors to hand over certain percentage of wages to the CRA. Without even informing the taxpayers, the act of garnishments can be actuated. So, right tax payment plan is very essential for the taxpayer.

The tax defaulters are sure to face further financial hardship, if they do not have well-timed discussion with the professional tax consultant for submitting tax payment plan. The tax defaulters often face humiliation in both professional and personal lives.

The absolute way out of this distressing situation lies in the submission of tax payment plan. This will clearly nullify your intention of evasion of taxes. So, as a defaulter it is very urgent necessity to make contact with any efficient tax consultant to settle the case with the CRA. On your behalf they will work out a reasonable and fair tax payment plan corresponding your financial capacity.

You may consider the act of negotiation with CRA personally, but a high-quality tax consultant only knows how to handle and negotiate with the authorized agents of CRA on the basis of their long experiences. The tax professionals are always unbeaten in preparing a tax payment plan. Their prudent solution will surely minimize your monthly payment of the total tax with no further penalties.

These are some of the most important grounds for you to know why making a reasonable tax payment plan is vital for the continued existence of lots of individuals, business or any other organizations.

Like most people, it is not likely that you plan to avoid paying tax, but sometimes circumstances get in the way and you are not able to pay what you owe. There can be many reasons why there are problems such as business problems, or simply a disagreement regarding how much you should pay. Regardless of the reason, you should be entitled to a CRA tax payment plan even if the CRA is trying to encourage you to pay it all off at once.

Once the CRA contact you, it may at first seem that they are on your side and want to help you get through this. You could well be offered the chance of a short term payment plan and all you need to do is fill in a form that gives all the details of your finances. Once this has been done it may be difficult to get the same level of support concerning the CRA tax payment plan.

Once you are in this position it is unlikely that you are going to be able to negotiate your way out of it. The fact is that in many cases you will owe the money and the CRA has one aim only and that is to get it. It is at times like this that you need the help of someone fully trained in regards to tax issues to help you get the CRA tax payment plan that is going to get you out of the mess that you find yourself in.

The main reason not to hand over all your details is that there could be consequences if you have other Owings ? even the sort that many other people have such as credit cards and loans. When a CRA tax payment plan is set up, the CRA will consider that sort of owing to be of less importance than the owing to them and will want all the money that has been used to make your repayments to be diverted to them. Clearly this is not good for you and could lead to you defaulting on your owing and ending up with a trashed credit rating.

If it is agreed that you can have a CRA tax payment plan, you will need to disclose all funds and this could include money set aside for a rainy day or your kids’ university funds. That is money that you will not want to take into account and that is why someone who is an expert when it comes to tax should be employed to get you the best deal.

The money you pay someone else to set up your CRA tax payment plan will be money well spent, as they can help you avoid liens and salary garnishment meaning that this is kept between you, them and the taxman, not your employer.

Once the CRA tax payment plan is up and running, it is hard to stop. This is why you should get expert help as they will make sure what you pay is what you can afford. They may also be able to recommend other help that you are entitled to.

There are often times when a taxpayer has a huge tax owing which he is unable to pay. This can also be a result of years of accrued interest on your original tax amount. Many times tax amount keeps on growing through time and turns up in a huge amount which you are unable to pay. Some people sighting this case and prepare filing of tax returns as they know the monster of the tax owing will soon grow out of their control. Once this monster gets out of control what you will be facing is a financial crisis and what you will be doing is preparing for a tax payment plan.

The tax owing is owed once an individual files returns. Inability to pay tax owing results in serious financial troubles. In order to escape legal actions people go after devising a tax payment plan, however designing this plan directly with the CRA can spell DOOM for you. This is so because not only will the CRA attempt to consider and accept a short term tax payment plan from you, they will also always want disclosure of significant financial information. This information can include where you live, work and where you bank. These details are taken in an attempt to be used later after your tax payment plan expires. If you miss any payment again thereafter, CRA using the prior information, attempts to enforce action on your bank account, home, and on your income using it to force the taxpayer to pay the entire tax owing.

The best way to handle this situation is to consult tax expert such as Tax SOS who can efficiently design a tax payment plan for you and negotiate on your behalf with the CRA.  Our experts are also able to host financial resources for those who require financial relief in wake of paying off their tax owings.

Also when it comes to devising a tax payment plan it is also recommended that you should never agree to pay a monthly amount that you cannot afford. Doing such a thing will only add up to your problems. In case of failure to pay the agreed amount monthly, serious actions can be taken by the CRA in form of income garnishments. This refers to the CRA taking over your bank account and deducting the decided amount monthly to collect all due tax owing from its taxpayer.

Hiring the services of tax experts will help you devise a tax payment plan that is workable for you and will also ensure that the clients are least exposed to the CRA. Remember it is necessary to devise a sound tax payment plan as anything wrong in this initial step may mean losing the battle for ever and even before you started it. Failure to pay taxes can result in serious consequences and promising payment on a schedule and still failing to do so will lead to even worse repercussions.

Summary

Tax payment plan is the option taken by taxpayers when they are unable to pay all their taxes in full. Tax payment plan helps individuals to pay their taxes off in installments however devising a proper plan is necessary as failing to pay the installments according to the devised plan can result in garnishments of wage or income.

Before you prepare your CRA tax payment plan, you need to work out the time you will require to pay off your full tax. You can break down your total tax owing and arrive at a figure that you can pay every month. After that, your tax consultant will start the negotiation with CRA to convince them why the monthly payment proposed is a reasonable one. It will be a back and forth negotiation process. The bottom line is CRA wants to collect the tax as soon as possible; you on the other hand, need to pay affordable amount without adding financial stress. You can begin your calculations of the tax portion by normally going over your assessment notice. 

As aforementioned, CRA tax payment plan is not usually granted at the first attempt. You have to spend considerable time working with your tax consultant in the preparation of a viable application so that you can justify to the CRA on why they should allow you to pay your taxes in installments.

The CRA has Income /Expense or a Net worth Statement that they like people to use when they are working out their  CRA tax payment plan. It will be better on your tax consultant’s part to submit to the CRA the current statement for mortgages, credit card bills, loans or any other kinds of liabilities that you may have. Bank statement, credit card statement and stubs will be required as proof to show that you have submitted accurate figures in your Toronto tax payment plan negotiation proposal. Your Credit Report will also help in your Toronto CRA tax payment plan negotiation. It will go on to show that you are not concealing anything and that your payment plan proposal is genuine and that you cannot pay more than that on a monthly basis.

Payment arrangements for your tax payment plan negotiation with CRA could be quite complicated. When you submit your proposal, there may be one CRA agent who is handling your case but there is likelihood that after few weeks, you may find some other agents attending to your case with a totally different outlook and you may have to ask your tax consultant to start the convincing game once again with this other agent. Once your payment negotiation arrangement has been accepted by the CRA for the whole period you have proposed, your tax consultant can also consider putting in an application for Taxpayer Relief. It is a process that prompts CRA to use their discretion and consider canceling or waiving your tax account’s interest charges.

Once the CRA tax payment is approved, it is important to obtain a written agreement with CRA. Typically a confirmation letter from the CRA agent is sufficient. This is to make sure CRA has that tax payment plan recorded in their system to avoid newly assigned collection agents knocking on your door asking for the whole payment again.

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.