Tax Debt Help: How To Get It & Dealing with Tax Issues

Need help dealing with tax debt? Here are tips for how to get tax debt help and how to effectively communicate and negotiate with the Canada Revenue. If you have tax debt, Farber Tax can help you negotiate a payment plan to reduce or remove your debt and any interest or penalties on it. Contact Farber Tax today.

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How to Get Tax Debt Help

 

If you owe money to the Canada Revenue Agency (CRA), you might be worried about how you will pay it and you’re likely seeking out tax debt help. This is understandable as the CRA charges very high interest charges and penalties to those who do not file or do not pay their taxes on time. The longer you are unable to pay, the more you will owe and the more difficult it becomes to resolve your situation.

When you add in the fact that the CRA has very strong powers, it becomes understandable why so many people find themselves looking for tax debt help.

The CRA charges compound daily interest on outstanding tax balances, as well as late-filing penalties to those who did not file their tax returns on time. These costs add up quickly. If you are not able to pay the debt owing, the agency can freeze your bank account, garnish your wages, seize your assets, place a lien on your property, and much more.

Since the agency has such strong collection powers, they are often very difficult to negotiate with. The CRA uses the threat of these collection tactics to get people to comply and that makes it hard to effectively communicate with them. The agency knows that it will likely be able to get the money in some form, so CRA agents often aren’t very wiling to negotiate.

 

Negotiating Tax Debt Help with the CRA

 

CRA processes are complicated. At Farber Tax Solutions, our team has the experience and skill needed to successfully navigate these processes and get you the tax debt help you need. We will analyze your situation, determine the best course of action, and then effectively communicate with the CRA to resolve your situation in the most favourable manner possible.

If you are planning on negotiating with the CRA and hoping that you will only need to pay a portion of what you owe, know that this will not happen. The CRA will only accept the full amount owing. Depending on your situation, and how you approach the negotiations, the agency may be willing to accept a payment plan that will see you make monthly payments until your obligation is paid in full. In the vast majority of cases, however, you will still be required to pay interest and any penalty charges.

Taxpayer Relief Provisions for Tax Debt Help

 

In some circumstances, the CRA is authorized to cancel or waive penalties or interest charges to provide tax debt help. However, these provisions are only offered to those who were unable to meet their tax obligations due to extraordinary circumstances that were beyond their control. For instance, natural disasters, deaths in the family, medical problems, errors made by the CRA, and other disruptions (such as postal strikes or CRA website issues) can potentially lead to tax relief provisions. Extreme financial hardship may also apply, if a taxpayer is able to prove that paying the interest and penalties will make it impossible to afford life necessities.

Taxpayers who are applying for tax debt help in the form of relief provisions will need to provide proof to back up their claims.

If you are considering applying for taxpayer relief, working with a professional is crucial. The team at Farber can work with you to prepare your application, communicate with the CRA on your behalf, and work to resolve your tax situation.

Farber Tax Solutions Helps You at Every Step of the Way including:

  • 1| Organizing: We analyze all documents and communication, to fight the CRA on your behalf
  • 2| Audits: We assist you with audits and ensure proper conduct by tax authorities
  • 3| Appeals: We can prepare a Notice of Objection, clarifying your standing with the CRA
  • 4| Litigation: We represent you at all levels of court