Behind on Taxes? How a Calgary Accountant Can Help You Catch Up
Falling behind on your taxes can happen for many reasons. Whether you're self-employed, running a small business, or simply haven't filed your personal income tax returns for a few years, catching up can feel overwhelming.
The good news is that you can take steps to get your finances back on track. Working with a professional accountant in Calgary can make the process easier and help you understand your obligations to the Canada Revenue Agency (CRA).
Why do people fall behind on their taxes?
Some people are unsure how to report self-employment income, while others have experienced major life changes, financial difficulties, or simply have not had time to organize their paperwork. For small business owners, managing bookkeeping, GST returns, payroll, and annual income taxes can become complicated as a business grows.
Whatever the reason, ignoring unfiled taxes can create additional problems over time.
What happens if you don't file your taxes in Canada?
The consequences depend on your circumstances, including whether you owe money to the CRA.
- Late-filing penalties: If you owe income tax, the CRA may charge penalties for filing after the deadline.
- Interest charges: Unpaid tax balances can accumulate daily compound interest.
- Delayed benefits: Missing returns may affect eligibility for certain government benefits and tax credits.
- CRA collection activity: Outstanding tax debts may eventually lead to collection measures.
Even if you don't owe taxes, filing outstanding returns is important to keep your financial records up to date.
How to catch up on unfiled tax returns
1. Identify your missing tax returns
Determine which years have not been filed. Review your CRA account or contact the agency to confirm your filing history.
2. Gather your financial documents
Collect available T4 and T5 slips, business income records, receipts, and other relevant financial information. An accountant may help identify missing records.
3. Prepare and file outstanding returns
An accountant can help prepare missing returns, identify eligible deductions and credits, and report information accurately.
4. Address any outstanding balances
If you owe taxes, you may be able to arrange a payment plan with the CRA. In some circumstances, taxpayers may qualify for penalty or interest relief.
Why work with a Calgary accountant?
Working with a local accounting professional can be particularly helpful when you have several years of unfiled returns or complicated financial circumstances. An accountant can help you understand filing requirements, organize your financial information, and develop a plan to stay current.
For Calgary entrepreneurs and self-employed professionals, ongoing bookkeeping and tax planning can also help prevent similar problems in the future.
Swift Accounting: Accounting assistance in Calgary
If you're behind on your taxes or need help organizing your financial records, Swift Accounting is a Calgary accounting firm to consider. Whether you're an individual dealing with outstanding tax returns or a small business owner looking for accounting support, speaking with a professional can help you understand your situation and next steps.
Getting caught up on your taxes is an important step towards reducing financial uncertainty and building a stronger financial future.
Learn more: Contact Swift Accounting to discuss your accounting and tax filing needs.
