CRA tax problems could take on a whole range of dimensions for taxpayers. They may take the form of

• Income that is not reported
• Demand to File
• Taxes which are overdue
• Back Tax
• CRA Tax Relief and Taxpayer Relief
• Notice of Objection
• CRA tax appeal
• Tax payment Plan
• Wage garnishment
• Voluntary Disclosure Program (VDP)
• CRA audit

How to properly deal with CRA tax problems  

Tax reporting in Canada is a stressful activity, particularly if the taxpayer has been served a letter from the CRA consisting of some kind of demand for financial disclosure or proof of evidence for something that has been claimed in the reports.

The logical approach to CRA tax problems is to meet them head on and on an informed basis, or the entire reporting episode may turn out to be one of your worst nightmares. It is not safe to ignore the communications that are sent by the CRA. It is better to make arrangements than keep quiet. Ignoring the notices from CRA would lead to a CRA collection issue which may stretch to your income being garnished through your employer.

It is advisable to seek the help of a qualified tax consultants or specialized tax accountant who could look after demand letters, frozen bank accounts, CRA wage garnishments and requests for financial disclosure or liens on your property. There are several service providers of this kind who specialize in the area of offering cost-effective tax related guidance to solve your tax problems.

Why use professional tax accountants to fix your CRA tax problems

A professional tax accountant would provide assistance in solving your tax problems which are related to income taxes, payroll taxes, Goods and Service taxes, Harmonized Sales Tax, etc. These tax accountants take on the responsibility of assisting individuals and businesses all over Canada and solving their CRA tax problems at the provincial and federal levels.

The professional tax accountant specializes in all accounting activities, audit planning and business consultation concerning all CRA tax problems. All insolvent taxpayers whose tax reporting is not up-to-date could approach the CRA through such accountants to accept a specified amount on the taxes outstanding.

Tax consultants have to be equipped as specialists in tax resolution and tax defense procedures to assist individuals and companies resolve their tax problems with the CRA. The related services generally include the entire imputing process which may consist of the Notice of Assessment, applicable requirements, request for waiver of interests, tax audit, cost of living and the net worth audit.

To help solve your CRA tax problems, the communication between your tax consultant is always required. Bankruptcy filing can be avoided and tax relief processes may be adopted. The assistance of tax consultant becomes essential as the tax defaulters are under the risks of legal enforcement actions.

To prevent CRA collection agents to take legal actions, get help from experienced tax professionals immediately before it is too late. Call Tax SOS for your free consultation at 1-877-982-9767.

Taxes are a source of income for Canadian government through which they are able to fund programs, spend on infrastructure development of the country. The largest tax obligation faced by individuals is the federal income tax. Majority of the individuals are legally obliged to file tax returns with Canada Revenue Agency, short for CRA, for the purpose of disclosing earned income and pay taxes accordingly. However, individuals can end up facing a myriad of tax problems in the process of filing returns and disclosing the income they have earned.

Discussed below are some of the common tax problems that are encountered by people when they are fulfilling their taxation obligations:

Common Mistakes that lead to tax problems

Mistakes in Tax Filings

Confusion can arise because of common mistakes when filing taxes and this can make this procedure a long and complicated one. A taxpayer might over or under calculate their tax because of simple mathematical errors made in a tax return. Penalties may have to be paid later on if the taxpayer has underpaid their tax. Moreover, if the taxpayer overpays and does not notice it, it can mean losing a lot of money. Some other tax filing problems that can also occur include checking the wrong boxes when filling forms or entering the wrong number.

Tax Audits

One of the most worrying and complicated tax problems that can be faced by individuals and businesses is that of a tax audit. When foul play is suspected by the taxation authority, they wish to audit the files of the taxpayers in order to unearth any discrepancies that may exist. The CRA will assign tax auditors to sift through the financial data of the taxpayer for checking if the return was filed accurately and additional taxes are calculated.

Tax Liens

If taxes are owed by a business or an individual and they are unable to make their payment, there are different collection methods that can be adopted by the CRA to force payment from the taxpayer. Tax liens are one of the most serious legal collection action. If a tax lien is placed on the taxpayer’s property, this can have an impact on the credit score of the taxpayer. Because of the lien, the tax payer will find it difficult to obtain loans or sell any real estate for that matter. Also, the property can also be possessed by the CRA in exchange for the tax owed.

Wage Garnishment and Levies

The procedure in which a portion of the taxpayer?s income is deducted for owed taxes is described as wage garnishment. When wages are garnished, the individual might not be left with a lot of income. Tax levies is also one of the most serious tax problems that individuals can encounter. In this process, the CRA may legally seize the assets and funds of individuals. These assets are taken to pay back the taxes that are owed to the government.

These tax problems can get quite serious if precautions aren’t taken beforehand by the taxpayer. If you are facing any of the problems above, do not wait. Contact experienced tax professionals to control the tax damage to you. Call Tax SOS at 1-877-982-9767 for immediate free consultation!