Unpaid Back Taxes in Richmond
If you find yourself in a position of owing back taxes, the time to act is now. With the right tax professional in your corner, you can get yourself the counsel and expertise you need to get on the path towards a future free of tax debt.
Accountants-BC Ltd. offers assistance for both individuals and businesses. Don’t delay, give us a call now at (604) 683-2341 for professional guidance with your unpaid back taxes.
Why Would You Owe Back Taxes?
There are several reasons why you might find yourself owing back taxes.
Some of the most common reasons include:
- Misreporting or failing to report income
- Not paying enough taxes throughout the year
- Claiming incorrect tax deductions and credits
- Late filing or incomplete tax returns
- Not properly accounting for business expenses
- Underpayment of self-employment taxes
- Unreported foreign income
What Happens If You Owe Back Taxes?
If you owe back taxes and don’t address the issue promptly, the Canada Revenue Agency (CRA) can collect the outstanding amounts using several tools.
Initially, they’ll send you a notice of assessment or reassessment outlining the amount you owe. If the debt remains unpaid, the CRA may impose penalties and interest, significantly increasing the amount you must pay.
Beyond interest and penalties, the CRA can implement other financial or legal consequences. They may issue a garnishment to your employer, which means a portion of your wages will be directly sent to the CRA. They can also seize your bank accounts or put a lien on your property.
In extreme cases, failing to settle your tax debt can impact your credit rating and lead to the loss of your assets.
How Far Back Can the CRA Go for Unpaid Taxes?
The CRA can take action to collect your outstanding tax debt for up to 10 years from the date the tax was assessed. This means they have a decade to pursue collection activities such as garnishing wages or seizing assets to settle the debt.
The limitation period may differ for income tax debt compared to GST/HST debt. Certain actions, such as filing for bankruptcy or entering into a payment arrangement with the CRA, can interrupt or extend this period. Seek the help of our tax professionals, who can provide tailored advice and develop a plan specific to your situation.
What to Do If You Owe CRA Back Taxes
If you owe back taxes to the CRA, taking prompt and decisive action is crucial to minimize the financial and legal consequences.
Here are some steps you can take:
- Review your notice of assessment: Thoroughly read any correspondence from the CRA to understand the amount you owe and the payment deadlines.
- Contact the CRA: If you have questions or need clarification, don’t hesitate to contact the CRA directly. They can provide details about your tax debt and offer guidance on your payment options.
- Set up a payment plan: If you can’t pay the full amount owed immediately, you can consider setting up a payment arrangement with the CRA. This will allow you to make manageable monthly payments over a specified period.
- Explore tax relief options: The CRA also offers various tax relief programs, which could potentially reduce your overall debt or penalties.
- Make payment a priority: Once you’ve established a plan for paying back your taxes, stick to it. Failure to make payments or defaulting on a payment plan can incur additional penalties and interest.
Working with a professional tax accountant helps you navigate the process and ensure you’re taking the necessary steps to address your back taxes.
Personalized Consultations with an Accountant
No two accounts are alike. That’s why at our firm, we prioritize personalized consultations with all our clients. We want to sit down with you and go through your accounts step by step to determine the best course of action for your unique situation.
Whether you owe back taxes due to non-filed returns or incorrectly filed returns, our tax lawyers will create a strategy to resolve the problem that’s tailored to work for you. Rest assured, we’ll thoroughly explain the potential outcomes of your position, so you’ll always know where you stand from start to finish.
With our representation, we can help you avoid penalties, interest, and prosecution. Discover the peace of mind that comes from having a tax lawyer in your corner. Contact us today.
Payment Options for Unpaid Taxes
Unfortunately, unpaid back taxes are subject to high-interest rates, and the amount you owe can increase at a rapid pace. Thankfully, we have a long history of applying sound accounting practices to defend our clients against tax audits and back tax claims. We’ll use all the resources at our disposal to reclaim your tax security.
We’ll meticulously assess your situation to determine the precise figure that you owe to the government. The tax authority may have wrongly assigned your liabilities – we’ll make sure their numbers are accurate.
Then, we’ll negotiate on your behalf with the tax authorities to determine if there’s a lump sum we can put down against your debt. Alternatively, we can develop a pay-back plan that can be implemented within the shortest delay. Rest assured, we fight tirelessly for our clients’ best interests. We always work to reduce your tax debt wherever possible.
Accountants-BC Ltd.’s Experienced Tax Lawyers
Our tax lawyers are certified, seasoned professionals. More than that, we’re dedicated to continual learning. We constantly stay up to date with recent developments in tax law and policy, so we’re always aware of the latest protocol for our clients with outstanding debt.
We’re committed to helping our clients navigate through the audit process with minimal financial harm. We deal with back tax claims and audits with the highest level of professionalism while providing honest answers and advice.
Contact Richmond’s Leading Tax Representatives
Filing back taxes is a time-sensitive issue. With tax law and policy frequently changing, it can be challenging to navigate without assistance. Get maximum tax debt relief with the help of a knowledgeable professional. Our accounting firm has the resources and skills required to guide you towards a debt-free future.
If you owe back taxes for any reason, act now. Call us to book an appointment with one of our tax specialists.