Consequences of unfiled late tax returns

Most people know they will get into trouble because of their late tax returns, but they may not realize the serious consequences of late and back tax returns.

  • If you have unfiled tax returns and the CRA believe you owe taxes, they can freeze your bank accounts, garnish your wages, seize your car and sell your house.
  • You are charged a late-filing penalty up to 34% of the amount owed.
  • You have to pay interest on the amount owed, and the interest is compounding daily.
  • You could miss out on tax refunds, credits and benefits.

What happens if you still just do nothing? The CRA may wait several years then send a letter demanding that you file all your unfiled back tax returns in a short period of time. If you don’t respond on time, or didn’t receive the letter, the CRA can take harsh legal actions again you. Just remember, you can run, but you can’t hide.

How we can help

We understand you really want to get your tax returns done on time, but it is just difficult to catch up when you are behind. For all these years you didn’t file your tax returns, you have to figure out your income and expenses, collect every single tax receipt, and organize all those tax documents. You may have already spent a lot of time on it, but there is still something missing. It is so frustrating that you have to give it up and leave your tax returns behind year after year.

We feel your pain and we will help you relieve it quickly. Here is what we can do for you.

  • We can get your tax slips for you. As a registered tax professional, we can get most of your tax slips (T4, T5, RRSP slips, T4A, T4A(P), etc.) through the CRA online service. This will save you a lot of time and hassle trying to collect all these tax slips from your employers, banks, and the government.
  • We help you organize your tax documents. We built these Income Tax Checklists to help you organize your tax documents. It also ensures you won’t miss any tax credits and deductions to which you are entitled.
  • We help you avoid the penalties and interest. We will help you apply to the Voluntary Disclosures Program and the Request for Taxpayer Relief Program. If you are approved by the CRA, you will save a lot of money by waiving the penalties and interest.

We have already helped many people file their tax returns and fix their tax problems. We can help you too.