7 Steps to Address Unfiled Canadian Tax Returns

Let’s be honest, dealing with unfiled tax returns or errors in your Canadian taxes can feel overwhelming. But don’t worry, you’re not alone. With the right legal support, you can not only resolve the issue but do so with confidence.

What to Do to Regain Control of Your Tax Situation

The most important thing to remember is not to ignore the situation! Unfiled tax returns can lead to serious complications. If you’re wondering what to do, follow this step-by-step guide to regain control of your tax situation:

1. Gather Documentation

Collect all relevant financial records, including T-slips, receipts, bank statements, and any other documents related to your income and deductions. Thorough documentation is essential for ensuring accurate tax filings.

2. Assess Your Situation

Determine how many years of tax returns remain unfiled and identify any errors in previously filed returns. This assessment is crucial in developing a strategic plan to address your tax issues.

3. Seek Professional Assistance

A tax lawyer provides invaluable legal representation, helping you navigate the complexities of Canadian tax law. They can represent you before the CRA and, if necessary, prevent the case from escalating to the Tax Court of Canada.

4. Consider the Voluntary Disclosures Program (VDP)

The CRA’s Voluntary Disclosures Program (VDP) may provide relief from penalties if you voluntarily come forward to correct unfiled tax returns. A tax lawyer can determine if this is the right option for your situation.

5. File Outstanding Returns

Prepare and submit all outstanding tax returns accurately and completely. A tax lawyer will ensure your filings comply with CRA regulations, helping you avoid further issues.

6. Negotiate Payment Options

If you can’t pay your full tax liability, explore payment arrangements with the CRA. Demonstrating a willingness to cooperate can prevent further collection action.

7. Maintain Ongoing Compliance

Keep your tax records organized and file your returns on time to avoid future issues. Staying compliant reduces the risk of penalties and legal action.

Connect With Tax Lawyers Today

At Taxpayer Law, we specialize in helping individuals navigate the complexities of unfiled tax returns. Whether you need assistance gathering documents, assessing your situation, or negotiating with the CRA, our experienced tax lawyers are here to help. Contact us today to connect with a skilled legal professional.