Taxes: You are now officially LATE!

in Canadian, CCPA, CRA, Income Tax

Let me be a little more exact, if you OWE money to the government today (May 1), and have not filed your taxes, you are now officially late! Always file by the deadline, or you may face penalties.

You can make an arrangement with the CRA, if you owe money (according to their web page):

If you can’t pay the full amount of tax you owe, you may be able to make a payment arrangement. If the CRA agrees that you are not able to make a full payment, an agent can work with you to develop a plan to help you pay your taxes.

So you had a chance, if you had called the CRA, and if you haven’t sent money yet, I would call the CRA anyhow, and see what you can do about it. Don’t do nothing, that is going to get you into more trouble, better to throw yourself on the mercy of the CRA now, than wait for them to come and get you!

If you are late, what kind of penalties might you get? Check here for the complete details, however:

If you owe tax for 2011 and do not file your return for 2011 on time, we will charge you alate-filing penalty. The penalty is 5% of your 2011 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.

Yikes! Hope you paid on time (if you owed money). Oh, and you may be able to get these penalties waived if you can give the CRA a good excuse (an excuse that they agree is an extenuating circumstance). Keep that in mind too.

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