If You Find Yourself In Financial Difficulty, Tax Firms Are Here To Help
Few things can disrupt your life and frazzle your nerves as much as financial hardship. Whether the result of extended unemployment, family illness, loss of an investment or unforeseen expense, an economic setback can wear down your optimism and impair both your mental and physical health. Many Canadians owe back taxes to the CRA and are unsure how to proceed. Although a mere 5.5 per cent of the population faces this dilemma, a plethora of tax professionals are available to help. A tax firm can often prevent an individual or small business from plunging into bankruptcy.
Tax resolution firms normally employ attorneys, agents and certified public accountants, all of whom specialize in federal and provincial tax laws. These professionals combine their expertise and provide a service that is superior to that of private lawyers and accountants with limited experience. They effectively negotiate with CRA representatives on behalf of their clients to arrange reasonable payment terms and attempt to eliminate the penalty charges. These powerful teams often include previous CRA workers who understand the structure of Canada's revenue enforcement agency. Occasionally, a tax firm will arbitrate a reduction for the total amount the client has to pay rather than simply a waived penalty.
If you owe back taxes and haven’t dealt with it, you should immediately attend to any tax problems involving underpayment or late filing. Failure to contact the CRA when you owemoney to them can be qualified as tax evasion, which is a criminal offense under Section 239 ofthe ITA. If you owe previous taxes and fear prosecution, you may benefit from the Volunteer Disclosure Program (VDP), although many tax experts warn that legal counsel should be sought first. This program is administered by the CRA to offer citizens the opportunity to report their unpaid tax debts and make arrangements for payment while avoiding the harsh consequences that come with neglected tax payments. You are not guaranteed acceptance into the program, but those who are received have a chance to fulfill their obligations without legal repercussion.
By working with a tax firm, you’ll have a qualified support system at your disposal. Many people might feel ashamed of their financial debts but these experts have seen it all. Tax firms offer to review their client’s specific financial conditions and prepare them for the likely response from the VDP. Although the program is beneficial for many financially troubled people, it is not always the best solution. At times, the CRA inflicts additional penalties on taxpayers in spite of acceptance by the VDP and heightens their tax problems. A qualified tax firm may suggest alternative approaches and find a better resolution. The group may also provide legal defense for the taxpayer if the CRA fails to honour an agreement.
While the tax troubles you are currently facing may be the result of late filing, unreported income, previous errors or other inaccuracies, there are people out there who can help you. To get help with a late tax filing, try a professional firm like Tax 911 Now, which have offices based in Toronto, Markham, Calgary and Vancouver. They can advise you on how to reduce your tax penalties during a free professional consultation. It’s time to take control of your tax-related problems and own up to your mistakes. Your peace of mind greatly depends on a functional financial status.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.