There will be times when it becomes a strain to pay your taxes and if this happens, it is important you deal with it right away. Ignoring the problem will just make it a bigger problem, but by speaking up an explaining what is going on, there is the chance to make a tax payment arrangement. You must be able to prove that you are not in a position to pay the tax and not just that you don?t want to pay, but once that has been confirmed, there will be people happy to allow a plan to be entered into.

Some people try to sort the problems out themselves without a tax payment arrangement, but this does not always work out well as it can be stressful, and often they just agree to a figure to be paid each month and do not consider if they will be able to raise this amount in a monthly basis. When planning to enter a tax payment arrangement it will be best to seek the advice of a professional as they will explain what you should consider as a sensible amount for living expenses. As it is easy to contact the authorities, too many people have set up an unreasonable plan without getting the right advice. If this happens and it is then impossible to make the payments the consequences will be worse and it could end up that the CRA will put a lien on your home.

Once the tax payment arrangement has been set up, you will find that there are so many ways to pay. There is a secure section on the CRA online site and there is a ?My Payment? section that allows payment to be made. A cheque can be sent and you could go to the tax office each month and make the payment in person. If you have telephone banking you can also carry it out that way. In fairness to the CRA they make it easy for you to pay once the tax payment arrangement has been established.

There are a number of reasons why you should not go through this process alone. It is not a quick and easy process, and it can be worrying having to deal with such an important organisation. The criteria set out for getting a tax payment arrangement is complex and where possible the CRA will want full payment. There will be interest charged, and while it is worth bearing in mind that high payments could cut out the interest paid on this owing, it could lead to others that will cost more. At present the compounded daily interest rate is 5%.

It is important that advice is sought as soon as you realise that there will be a problem. If legal proceedings have been started against you it will be hard to stop the process. Even if it is stopped it may prevent you getting such a good deal on the tax payment arrangement as you would have got if you had made contact earlier. It is bound to be a worrying time, but there are ways to enter a tax payment arrangement and there are people to help you.

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.