Avoid Income Tax Penalties By Filing Your Return On Time

At this time of year Canadians begin to turn their attention to filing their income taxes. Every taxpayer needs to make sure they are able to file taxes correctly with the CRA (Canada Revenue Agency) and since this can be a difficult process some taxpayers turn to a professional tax firm for help and advice. Tax firms are a very important resource to utilize to make sure that all laws are adhered to, forms are submitted properly and that no available deductions are overlooked.
 
Sometimes taxpayers are already facing issues from the prior year’s taxes that need attending to. Late filing, tax evasion, tax audits and overdue taxes are just some of the many tax problems that taxpayers need help with every year. It’s easy to ignore tax problems because they are annoying to deal with and nobody enjoys facing issues with their taxes. However it is important to be aware of some of the penalties that you could face if you let things go for too long.  If you have a tax payment that is overdue from last year the CRA charges compound daily interest starting May 1, 2014, on any unpaid amounts owing for 2013. They will also charge interest on penalties starting the day after your return is due. You can also face an additional penalty if the CRA determines that you have knowingly made a false statement regarding your taxes.  It is important that you should understand the financial penalties that you could face if you find yourself in one of these situations.

Hiring a professional tax firm is a reassuring and responsible way to address any tax questions or problems that you have. When looking at how to choose a tax firm that will fit your needs and help most effectively, there are a few things to look for. It is important to choose a tax firm that is working for you and looking after your best interests. A good tax firm will offer help and advice so that you can file your taxes; they should also offer legal services, help with setting up payment arrangements, steps for how to simplify tax audits and late filing issues in addition to other services. If you have questions about the entire scope of tax services provided and what you should expect from a great tax firm you can read the details online at anytime by visiting Tax911Now.Ca.

If someone has unreported income from a previous year or did not file at all, there are options to get the problem resolved and make the taxpayer and CRA happy. The VDP (Voluntary Disclosure Program), otherwise known as tax amnesty, gives taxpayers a way to take care of the problem before it even happens. Don't wait on any tax problems for the CRA to contact you, if you consult with a tax professional before that point, an expert can fight on your behalf to assist before anything detrimental happens. The best way to face any tax situation is to arrange for a consultation with an experienced tax professional to determine which actions are the appropriate approach to each individual case.