Rush to File Back Taxes Can Cost You More
For people with back tax problems, it is very important to become educated first and see all perspectives before simply filing taxes with the CRA. Quite often people rush to file their back taxes prior to truly understanding the consequences. This ends up costing more as a result of the hefty penalties and interest charged by the CRA for late filing.
CRA’s Late Filing Penalties
Many people are unaware that the CRA charges penalties for late filing on top of taxes owed. The penalties are quite hefty, especially for the repeat offenders.
If you owe taxes and do not file your return on time, first time late filing penalties will be up to 17% of the tax owing.
If the late filing is a repeat occurrence, the late filing penalty can nearly triple to a maximum 50% of the tax owing.
CRA’s Interests are Compounded Daily
In addition to the late filing penalties noted above, the CRA charges interests on your tax balance and penalties. The interest is much higher than that of banks and is compounded DAILY.
It is normal for people with multiple years of back taxes to see that more than half of their total tax debt is made up of penalties and interests. When the interest is compounded daily, the interest keeps rolling without a break. It is like a non-stop taxi meter for years.
Late Filing May Even Lead to Criminal Charge
Even worse people may be convicted and as a result, be charged criminally for failure to file taxes. The Canada Revenue Agency (CRA) often notifies the public about taxpayers Canada-wide who plead guilty in the Court of Justice for failing to file taxes.
Main Reason for Unfiled Taxes or Late Filings to CRA
An increasing number of individuals and business owners have unfiled tax problems. Many believe that by filing their taxes they may owe money that they cannot afford to pay. This is one of the main reasons people do not file taxes on time. Quite often, the problem snowballs out of control for many years without being noticed by the taxpayer.
Key Factors in Selecting Tax Service Providers
For people with difficult tax troubles, two things are very important in selecting a tax service firm: the experience and the cost.
Armed with thorough Canadian tax knowledge and first-hand experience with tax agencies of all levels throughout the years, Tax SOS’s team has helped many clients with tax problems just like yours obtain a satisfactory resolution. We often save people much more than what they expected as a direct result of our know-how. See for yourself what our happy clients are saying about their experience through their testimonials.
Why is Tax SOS Different
Unlike most accountants and tax preparers whose services stop at tax filing, Tax SOS deals with all other problems associated with filing back taxes. To be specific:
1. Prior to filing, we can help you negotiate with the CRA for removal and/or reduction of late filing penalties and interests.
2. After filing, we have the required experience to fight for you on the returns in case of a CRA audit.
3. We can help you negotiate an affordable payment plan so no legal collection action will be taken against you by the CRA in cases where the tax debt is too high.
4. We may even be able to negotiate tax relief for you which would reduce the tax penalties and interests on taxes owed.
Free Tax Consultation & Rates Guarantee
We offer an initial consultation completely FREE. A very experienced tax consultant will take as long as necessary to help you understand every aspect of your tax problem and review all available options and outcomes to minimize the tax damage to you. We will also provide you with the steps required to address your tax problems effectively. It is free and comes with no obligation to work with us if you are not ready to do so.
Even better, if you do decide to work with us, we guarantee our rates as the most competitive in the tax resolution industry.
At Tax SOS, we specialize in strategically resolving your unfiled tax issues. We will analyze all potential options and outcomes associated with your back tax problems and recommend the best course of action to minimize the damage.
Tax problems won’t just disappear automatically. Get help TODAY by calling the Tax SOS team at 416-623-9234 or 877-982-9767 or go to the Contact page.