What Can Taxpayers Do If They Can’t Pay Their Taxes?
Tax season can be a stressful time, especially if you are facing the daunting reality of owing money to the CRA. But before you let anxiety take hold, take a deep breath. You are not alone! Many Canadians struggle to meet their tax obligations, and the good news is, there are solutions available.
If you are facing a CRA tax reassessment it is time to take action!
Receiving a CRA tax reassessment can be scary, but it does not have to mean financial doom. This simply means the CRA has recalculated your tax liability, and you may owe additional funds. The key is to address the situation proactively.
What Are Your Options
You do have options in the form of tax lawyers who can provide invaluable taxpayer legal support to help you navigate tax debt and find the best solution for their unique circumstances. Depending on your situation, here is is what a tax lawyer may advise you to do:
Negotiating a Payment Plan with the CRA
The CRA is often flexible when it comes to repayment. You can set up a manageable instalment plan to pay your debt back over time.
Making a Partial Payment
Even if you can not pay the full amount upfront, every bit counts. A partial payment can help reduce the accruing interest and demonstrates your willingness to resolve the issue.
Deferring Your Payment
In certain situations, the CRA may allow you to delay your tax payment until your financial situation improves.
Requesting Taxpayer Relief
Depending on your circumstances, you may be eligible for relief from penalties and interest. This can significantly reduce your overall tax debt. A tax lawyer can help you assess your eligibility and navigate the application process.
Considering a Consumer Proposal
A consumer proposal is a legally binding agreement between you and your creditors, including the CRA. It allows you to settle your tax debt for a reduced amount, often up to 80% less.
Bankruptcy
While bankruptcy should be considered a last resort, it can completely eliminate your tax debt, allowing you to rebuild your finances from scratch.
Contact Experienced Tax Lawyers for Legal Support
No matter the route you choose, taking action is crucial!
Tax debt can feel overwhelming and so can CRA tax reassessments, but there is help available! At Taxpayer Law, our tax lawyers can help you take strides towards a brighter financial future. Do not let tax debt control your life. Take action, explore your solutions, and find the path to financial freedom with our taxpayer legal support services.
Contact us today to get started!