LATE FILING CAN BE VERY TAXING
Owing taxes should be avoided or it could cost you big. Late filing can come with interest, penalties and even interest on your penalties!
Don’t Be Late for a Very Important Date
The Canada Revenue Agency sets a deadline of April 30 for filing personal tax returns, and there are consequences for missing that very important date. The only thing that’s for sure is death and taxes, but even in death there’s no escaping the taxman – even if you passed away during the tax year . Your estate has the later of the filing deadline and six months after the date of death to file for you. If April 30 falls on a Saturday or Sunday, then the deadline is extended until the next business day. This year, the deadline is May 2, 2016.
Major Penalties on Late Tax Filing
If you owe taxes and fail to meet the deadline, penalty charges and daily compound interest will accrue on the unpaid amount. The penalty is 5% of the outstanding balance plus and additional 1% of the outstanding balance, for every month your return is late, to a maximum of 12 months. If you have 12 months late tax filing, your total penalty will therefore be 17% of the balance owing. What’s worse, interest will be charged on the penalty back to the original filing date.
Filing Taxes Late?
Let’s take things one step at a time. Visit one of our convenient branches and let’s talk. We can examine your files and discuss your situation to find a solution to your late tax filing. H&R Block Tax Professionals are trained to cut through the clutter and find every tax deduction and credit you qualify for, because no one wants to pay more than their fair share of taxes.
An Exception to the Rule
Generally, the only way to file late without penalties is if the government owes you money. Even then, you may suffer a financial set back as the CRA will keep your refund until you do file your return.
Don’t Wait Another Day
Why wait any longer? Let’s get started, today. H&R Block Tax Specialists are available year round – not just at tax time. Our Tax Specialists can answer your questions about late tax filing and offer you the reassurance you need. Drop by; we’ll be happy to see you.