It will never be too late for you to file your income taxes past years. People think in terms of filing their income tax returns generally for the current year. But, if you have not filed tax returns for the past few years or you have tax returns which are overdue or outstanding, you can seek tax accounting help from professionals.
People who have not filed income taxes past years have to be wary about penalties for tax returns which are being filed late. CRA may apply a penalty for failure to file the taxes on time. The defaulters may also get a Notice of Assessment. This notice will summaries the earnings on which the default assessment has been based. The Notice will also inform the defaulters the date by which the overdue returns have to be filed. Penalties will be severe on people who have more than a single tax return which is outstanding in their name or if they have a poor history of tax return filing. All those who have not complied with a request to file their tax returns will be dealt with severely.
The CRA can collect information concerning your income taxes past years from your banks, employer and other government agencies. If you seek professional help, the tax accountants will be able to connect your Social Insurance Number and can access details about your filing status with the CRA to ascertain the actual submission periods that have been reported.
The accounting firm will also work with you to ascertain the deductions that could be relevant and help you in locating that information. If you are able to retrieve your past receipts, information, expense bills and bank statements for the purpose of filing income taxes past years, it would make things easy for you and your accountant. There are few deductions that you will be in a position to claim even when you do not have receipts.
Your tax accountant can submit a nil returns if you were not required to file a tax return for some of the total outstanding years when you decide on filing income taxes past years. This will help you to get up to date with the CRA tax office. When you complete your tax returns which are outstanding by filing for income taxes past years, you may be able to match your past entitlements for the benefits due to you like, GST tax credit, child tax credits.
When you file your late return, you may still be entitled for refunds to take advantage of that. It will be a daunting task to retrieve all the information and compile it on your own. It is, therefore, better to take professional help. It will give you the peace of mind when you bring your tax records up to date with the CRA. The tax accounting firm can help you in keeping your records in a systematic manner. It can help you with your record cards, newsletters, annual reminders, bank statements, log books, receipts and bills.